The Alliance for Economic Research and Ethics Ltd/GTE has called for predictable, multi-year funding for the Nigerian Education Loan Fund (NELFUND), warning that uncertainty over its financing could undermine efforts to expand access to higher education.
The organisation also urged the Federal Government to strengthen transparency and accountability in the student loan scheme, including publishing detailed information on applications, approvals, beneficiaries and disbursements.
The recommendations are contained in a policy commentary titled No Godfather, Just a Future: Why NELFUND Must Become Nigeria’s Singapore Project, issued by Dele Kelvin Oye, chairman of the Alliance for Economic Research and Ethics.
The group said NELFUND had disbursed ₦372.62 billion as of September 29, 2026, comprising ₦192.89 billion paid directly to 319 institutions for fees and other charges and ₦179.73 billion provided to students as upkeep allowances.
It also reported that 1,659,853 applications had been processed since the loan portal opened in May 2024. However, the organisation cautioned that processed applications should not be confused with approved applications, unique beneficiaries or students who have received funding.
Despite the programme’s progress, the Alliance said its long-term success would depend on securing a stable funding structure that could withstand changes in government and annual budget pressures.
“A good delivery system can still fail if it is fed by uncertainty. NELFUND needs predictable, multi-year financing that is lawful, transparent and large enough to match the scale of student demand,” the group said.
The call comes against the background of changes to the statutory funding arrangements for the student loan scheme.
According to the Alliance, the Nigeria Tax Act 2025, which took effect on January 1, 2026, removed Section 17(1) of the Students Loans (Access to Higher Education) Act 2024, including the former provision allocating one per cent of specified taxes, levies and duties collected by the former Federal Inland Revenue Service and accruing to the Federal Government.
The new tax law introduced a four per cent Development Levy on the assessable profits of liable companies, excluding small companies and non-resident companies.
The group also noted that 15 per cent of the levy’s revenue was allocated to the Nigerian Education Loan component.
It stressed that the allocation represented 15 per cent of Development Levy receipts, not 15 per cent of all federal tax revenue or four per cent of companies’ profits.
It calculated that the allocation was equivalent to 0.60 per cent of the relevant assessable-profit base before exemptions, collection performance and timing effects.
The organisation warned that a statutory allocation did not automatically mean the money had been collected and transferred to NELFUND.
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“Government should publish the collection, transfer and disbursement trail in full,” it said.
The Alliance recommended establishing a transparent, multi-year funding arrangement with a minimum funding threshold to reduce the programme’s dependence on annual budget decisions.
It also proposed that Nigeria consider lessons from Ghana’s education financing model.
It clarified that Ghana’s Education Trust Fund is financed through a separate 2.5 per cent levy on taxable supplies and imports, rather than a 2.5 per cent allocation from existing value-added tax revenue.
The organisation said Nigeria could either consider a legally defined allocation from existing VAT receipts, with appropriate public-finance safeguards, or introduce a separate education levy similar to Ghana’s model.
It said any such arrangement should clearly define the tax base, rate, collection agency, receiving fund, exemptions and reporting requirements, alongside measures to prevent diversion of the money.
The Alliance also cautioned against relying on recovered corruption proceeds, dormant bank balances or unclaimed dividends as substitutes for stable funding.
It said recovered assets could supplement student financing only when they had been finally forfeited, lawfully cleared and transferred under the applicable legal and public-finance requirements.
Similarly, it warned that dormant balances and unclaimed dividends should not be treated as ownerless funds because the legal framework preserves the claims of their owners.
“Let every naira from any extraordinary source be additional to—not a replacement for—stable funding,” the group said.
Beyond financing, the organisation called for more detailed public reporting by NELFUND to distinguish applications received and processed from approvals, unique beneficiaries, payments to institutions, upkeep allowances, pending cases and failed transactions.
It also urged the fund to publish information broken down by geographical area and student completion outcomes, supported by plain-language performance reports and independent audits.
It said NELFUND’s significance extended beyond the amount of money disbursed, arguing that its application and payment processes could provide a model for delivering other government programmes without political interference.
It recommended extending similar rule-based systems to scholarships, agricultural support, healthcare subsidies, housing and enterprise programmes, with published eligibility criteria, verifiable records, independent audits and effective complaint procedures.
The Alliance also proposed voluntary contributions from employers, alumni, businesses, professional bodies, foundations and Nigerians in the diaspora to support priority areas such as technical education, engineering, healthcare, agriculture and the digital economy.
However, it warned that donors should not be allowed to select beneficiaries on political, ethnic, religious or commercial grounds.
It further said education bonds and other financing instruments could form part of NELFUND’s future funding strategy, provided they were issued under the law, with clearly defined repayment responsibilities, appropriate approvals and full disclosure to investors.
The organisation stressed that sustainable student financing must also be supported by improvements in teaching, skills development, quality assurance, research, internships and employment opportunities.
“A revolving fund revolves only when graduates can earn. That is why NELFUND must be joined to credible teaching, skills development, quality assurance, research, internships and an employment strategy. Nigeria cannot collect repayments from salaries that do not exist,” it said.
The Alliance described Singapore’s experience as a lesson in linking education, technical training, skills demand and economic planning over several decades rather than around election cycles.
It urged the government to protect NELFUND, provide reliable funding, publish evidence of its performance, audit its operations and extend its delivery approach to other social programmes.
The organisation added that the long-term objective should be to ensure that access to higher education depends on clear eligibility rules and reliable public financing rather than personal connections or political patronage.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X