NELFUND Student Loan  Seeks National Assembly Partnership to Boost Education Financing

The Nigerian Education Loan Fund (NELFUND) has urged stronger collaboration with the National Assembly to ensure the smooth implementation of the newly introduced development levy, which takes effect from January 1, 2026.

The levy, introduced under the National Taxation Act (NTA 2025), mandates a 4 percent charge on the profits of taxable companies, excluding small businesses, non-resident firms, and profits already subject to hydrocarbon tax.

According to the provisions, NELFUND is entitled to 25 percent of the levy’s proceeds. The Fund described this allocation as a major opportunity to expand access to affordable loans for Nigerian students pursuing higher education.

In a statement, the Managing Director and Chief Executive of NELFUND, Mr. Akintunde Sawyerr, said the additional revenue stream would provide a stronger financial base to deliver on the agency’s mandate. He, however, emphasized that success would depend on three critical factors: timely appropriation by the National Assembly, efficient fund releases by the Ministry of Finance and the Office of the Accountant-General of the Federation, and nationwide sensitisation.

Strategic Priorities

To maximize the levy’s potential, NELFUND outlined several initiatives, including:

• Nationwide awareness campaigns to educate students, families, and institutions about loan opportunities.
• Investment in digital platforms for transparent and user-friendly loan applications and disbursements.
• Strengthened collaboration with tertiary institutions to streamline loan administration and repayment processes.
• Expanded inclusivity to ensure students in underserved regions and vulnerable groups benefit fully from the scheme.

Sawyer described the levy allocation as a turning point in Nigeria’s education financing system, noting that it would enable the agency to reach more students and strengthen its operations.

“The 25 percent allocation from the development levy equips us to deliver more effectively on our mandate. But for this to translate into real impact, we need strong collaboration with the National Assembly, the Ministry of Finance, and the Office of the Accountant-General. Together, we can build a system where no Nigerian student is denied education due to financial barriers,” he said.

Commitment to Accountability

NELFUND reiterated its pledge to maintain accountability and transparency in managing funds, assuring stakeholders that all allocations would be directed toward expanding student access to education and strengthening Nigeria’s human capital development.