The Federal Government has proposed amendments to the Tertiary Education Trust Fund (TETFUND) Act, suggesting that 30% of its revenue be redirected to the Nigerian Education Loan Fund (NELFUND) to enhance access to higher education for Nigerian students.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, confirmed the proposed changes during a state house briefing. He explained that this adjustment would provide a sustainable financial source for the Nigerian Education Loan Fund, created under the Students Loans (Access to Higher Education) Act.
Onanuga stated, “Some people may have been wondering, how are we going to fund the loans we are giving to Nigerian students? The government has provided an answer. Most of the funding will come from the money going to TETFUND.”
Under the new proposal, 30% of TETFUND’s allocations from the Federation Account would be transferred to NELFUND to support the student loan initiative. This ensures a steady flow of funds to sustain the loan scheme, which aims to make higher education more accessible.
In addition, the bill proposes a 5% cap on NELFUND’s administrative costs, meaning it cannot spend more than 5% of its income on operational expenses, including salaries and capital projects. Onanuga explained, “Whether it wants to do capital projects in its office or pay salaries, NELFUND cannot spend more than five per cent of whatever accrues to it from the Federation Account.”
What This Means for Nigerian Students
If approved by the National Assembly, this amendment would increase access to educational loans, alleviating financial burdens on students and prioritizing education funding. It also reflects the government’s broader strategy to support education as part of national development efforts.
The proposal highlights the government’s commitment to stabilizing the economy through education and providing opportunities for more students to pursue higher education with reduced financial strain.
