FEC Orders Recovered Looted Funds for Student Loans

The Federal Executive Council (FEC) has directed the transfer of legally recovered looted funds held by the EFCC to the Nigerian Education Loan Fund (NELFUND) to strengthen the student loan scheme.

Education Minister Tunji Alausa announced the decision after Wednesday’s FEC meeting in Abuja. He said the council also approved efforts to mobilise funds from the Unclaimed Dividends Trust Fund and Dormant Accounts Trust Fund for NELFUND, subject to the laws governing them.

The directive covers only liquid funds that the EFCC has legally recovered and that are no longer subject to litigation. It does not include seized properties or money still involved in legal disputes.

“The President was very clear: not seized properties, all recovered looted funds, liquid funds recovered by the EFCC will now be transferred to NELFUND,” Alausa said.

President Bola Tinubu has directed the Attorney-General of the Federation, Finance Ministry, Education Ministry, Debt Management Office and other relevant agencies to develop the legal framework. The Attorney-General will also work with the EFCC chairman to identify eligible funds.

More than 1.2 million Nigerian students currently benefit from NELFUND, which has also disbursed over ₦93 billion in upkeep allowances.

Meanwhile, FEC approved about ₦118.31 billion to complete the abandoned National Library of Nigeria headquarters in Abuja, alongside approximately ₦37 billion for furnishing, bringing total approved funding to about ₦155 billion.

The project began in 2006 but was abandoned after work stopped in 2008. Alausa said construction should resume within months, while noting that donations encouraged by First Lady Oluremi Tinubu generated about ₦25 billion for the project.

FEC also approved the Nigerian Academy for the Gifted and Talented, which will transform the existing Suleja Academy.

Could the recovered funds provide NELFUND with a more sustainable financial base?