FG has ordered TETFUND in the Fresh Amendment Act to allocate 30% of funding for student loans.
NewsOnline Nigeria reports that the federal government has put forward amendments to the Tertiary Education Trust Fund (TETFUND) Act, proposing that 30% of its allocations from the Federation Account be redirected to fund the Nigerian Education Loan Fund (NELFUND).
During a state house briefing, Bayo Onanuga, the Special Adviser to the President on Information and Strategy, confirmed the proposed amendments, aimed at enhancing funding for Nigerian students’ access to higher education.
He explained that the Nigerian Education Loan Fund will be financed through these adjustments to ensure a sustainable source of financial support for students.
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Onanuga stated, “Some people may have been wondering, how are we going to fund the loans we are giving to Nigerian students? Well, I think the government has provided an answer. Most of the funding will also come from the money going to the Tertiary Education Trust Fund.”
According to the proposal, 30% of TETFUND’s revenue from the Federation Account will now be allocated to NELFUND, created under the Students Loans (Access to Higher Education) Act, to offer student loans. This addresses concerns over how the government plans to sustain the loan initiative.
“So there’s an amendment to the TETFUND Act that was made in 2011 that now says that the fund shall, before disbursement of the amount in the fund, set aside an initial one-third of the amount to be transferred to the Nigerian Education Loan Fund. That is, 30% of whatever TETFUND gets from the federation account will now be passed on to NELFUND, which will provide a ready funding source to NELFUND”
NELFUND’s administrative costs
In addition, the bill places a 5% cap on NELFUND’s annual administrative expenses. The fund will not spend more than 5% of its annual income on operational costs, such as salaries, capital projects, and general services related to its functions to prioritize educational funding.
Onanuga further explained, “NELFUND has been pegged to spending only 5% of its income on its administration. Whether it wants to do capital projects in its office or pay salaries, it cannot spend more than five per cent of whatever accrues to it from the Federation Account.”
NewsOnline Nigeria reports that the amendment is designed to provide a steady funding source for the Nigerian Education Loan Fund while limiting administrative expenses at TETFUND. With 30% of TETFUND’s revenue now directed toward student loans, this proposal will increase access to higher education for many Nigerian students. It also reflects a broader effort by the government to prioritize education funding as part of the nation’s economic stabilization and development.
If approved by the National Assembly, this amendment could help ease the financial burden on students, ensuring that more funds are available for educational loans while maintaining strict controls over NELFUND’s operational costs.
