Tinubu Directs Seized Funds By EFCC, Unclaimed Dividends From Capital Market Be Channeled To NELFUND

President Bola Tinubu has instructed that funds seized by the Economic and Financial Crimes Commission (EFCC), as well as unclaimed dividends, should be directed towards bolstering the Nigerian Education Loan Fund (NELFUND). This directive, as disclosed by the Minister of Education, Dr Tunji Alausa, stems from a meeting of the Federal Executive Council (FEC). The funds to be transferred from EFCC recoveries will only include those that are unencumbered and not currently involved in legal disputes.

Additionally, the FEC has approved a directive to channel unclaimed dividends held in the Capital Market Trust Fund and Dormant Account Trust Fund to NELFUND. Unclaimed dividends are declared dividends that have not been collected by their rightful shareholders, often due to outdated records or other administrative issues. These funds accumulate over time and currently total approximately N270 billion according to the Securities and Exchange Commission (SEC).

The primary objective of this measure is to strengthen NELFUND's financial capacity, as the number of students benefitting from the student loan scheme and its funding obligations continue to grow. It is important to note that this directive does not cover properties seized by the EFCC or recovered assets still under legal processes. The Federal Government's student loan programme is already expanding, thereby increasing the financial burden placed on NELFUND.

Meanwhile, the SEC has emphasized that shareholders retain the right to claim certain unpaid dividends. The Commission has directed companies and registrars to continue honoring valid claims until the Unclaimed Funds Trust Fund is fully established and operationalized. This proposed system aims to minimize instances of double payments and enhance transparency in the administration of student loans.