NELFUND Partners NASS to Boost Student Education Loan Financing Through Development Levy

The Nigerian Education Loan Fund (NELFUND) has urged stronger collaboration with the National Assembly to ensure the smooth implementation of the 4% development levy on corporate profits introduced under the National Taxation Act (NTA 2025).

The levy, which takes effect on January 1, 2026, is expected to reshape Nigeria’s education financing system, with 25% of its proceeds allocated directly to NELFUND. This provides a fresh funding stream for affordable student loans, tuition financing, and debt support schemes across the country.

How the Development Levy Impacts Education Financing

Under the new taxation framework, the levy applies to taxable company profits but excludes small businesses, non-resident firms, and profits already subject to hydrocarbon tax.

According to NELFUND’s Managing Director, Mr. Akintunde Sawyerr, the allocation offers a sustainable education finance model, enabling more Nigerian students to access low-interest education loans, reducing dependency on high-cost credit options, and strengthening repayment structures.

He noted that the success of the levy depends on three major factors:

• Timely appropriation by the National Assembly
• Efficient fund releases by the Ministry of Finance and the Office of the Accountant-General
• Nationwide awareness campaigns to promote the education loan scheme

Strategic Priorities for Loan Expansion

NELFUND outlined several initiatives to maximize the levy’s impact, including:

• Digital loan platforms for transparent applications and faster disbursement
• Partnerships with tertiary institutions to streamline repayment systems
• Expanded access for underserved regions and vulnerable groups
• Financial literacy campaigns to help students understand loan repayment terms and credit management

Sawyer emphasized that the development levy is a turning point in Nigeria’s student financing system, saying:

“This funding equips us to reach more students, strengthen our systems, and deliver more effectively on our mandate. But for real impact, we need collaboration with the National Assembly, Ministry of Finance, and the Accountant-General’s office.”

Wider Implications for Nigeria’s Economy

Policy experts note that linking corporate taxation with education finance can strengthen Nigeria’s human capital development, reduce unemployment, and boost economic growth. By integrating taxation and education funding, the government is also aligning with international best practices in public-private financing for education.

The move is expected to reduce the long-term student debt burden, promote financial inclusion, and open new opportunities for Nigeria’s future workforce.

What This Means for Students and Families

For Nigerian students and their families, the levy-backed NELFUND initiative offers:

• Easier access to low-interest student loans
• Reduced reliance on commercial bank loans with high interest rates
• A structured repayment model linked to graduate earnings
• More opportunities for higher education financing without financial hardship

The 25% allocation from the new development levy creates an opportunity to redefine student loan financing in Nigeria. If properly implemented, it could ease the pressure on millions of Nigerian families, expand access to higher education, and strengthen the nation’s long-term economic outlook.