The Federal Government of Nigeria has announced that 30% of the Tertiary Education Trust Fund (TETFund) will be allocated to support the Nigerian Education Loan Fund (NELFUND).
This was revealed on Wednesday by Bayo Onanuga, Special Adviser to the President on Information and Strategy, during a briefing at the Presidential Villa, Abuja.
The decision is part of proposed amendments to the Economic Stabilisation Bill, currently under consideration by the National Assembly, and it is expected to significantly bolster the student loan scheme.
Onanuga explained the rationale behind the decision, noting that “some of us have been wondering how we are going to fund the NELFUND, and the government has an answer. Most of the funding will come from the money going to TETFund.”
The 30% allocation will be drawn from TETFund’s share of the Federation Account before any other disbursements are made, ensuring a dedicated and reliable source of funding for student loans.
The amendment to the TETFund Act 2011 is seen as a critical component of the government’s strategy to enhance education financing, and Onanuga assured the public that TETFund’s role in supporting public tertiary institutions will not be compromised.
“TETFund has been doing a lot of work helping universities, polytechnics, and colleges of education,” he said, emphasizing that the reduction would not affect ongoing infrastructural projects.
The Senior Special Adviser to the President on Media ,O’tega Tegra, also highlighted additional measures taken by the government to ease financial burdens on public higher institutions.
One such move was waiving the requirement for universities to remit a portion of their Internally Generated Revenue (IGR) to the federal government, allowing institutions to retain and utilize these funds for operational needs.
Tegra reiterated the government’s commitment to fulfilling President Bola Tinubu’s promise during the #EndBadGovernancebprotests to channel financial recoveries from illegal activities towards funding student loans.
He added that although budgetary allocations for education can still be improved, the new measures, including the TETFund allocation, are part of ongoing efforts to bridge funding gaps in the education sector.
“We know they need a lot more funding, and the budgetary allocations to education can be improved,” Tegra said, “but a lot is being done, at least in the interim, to bridge whatever funding gaps they have.”
