The Nigerian Education Loan Fund (NELFUND) has called for stronger collaboration with the National Assembly to ensure the full and effective deployment of its 25 percent allocation from the newly approved Development Levy. The Fund noted that timely appropriation, efficient releases, and nationwide sensitisation will be essential to unlock the transformative potential of this new revenue stream in expanding access to affordable education loans for Nigerian students.
The Development Levy, introduced under the National Taxation Act (NTA 2025), imposes a 4 percent charge on the assessable profits of taxable companies, excluding small and non-resident companies as well as profits from hydrocarbon tax. NELFUND is entitled to 25 percent of the levy proceeds, a provision the Fund described as a major opportunity to scale education financing and support millions of students in achieving their academic aspirations.
While acknowledging the strength of this new funding stream, NELFUND stressed that its success will depend largely on two factors: prompt appropriation by the National Assembly and efficient fund releases by the Ministry of Finance and the Office of the Accountant-General of the Federation. The Fund also underscored the importance of nationwide sensitisation to ensure that students, families, and institutions are fully aware of the opportunities created under the new framework.
As part of its forward-looking plans, NELFUND pledged to expand sensitisation campaigns across the country, invest in digital platforms to make loan applications and disbursements more transparent and efficient, strengthen partnerships with tertiary institutions to streamline administration and repayment systems, and prioritise inclusivity by reaching underserved regions and vulnerable groups.
Speaking on the development, the Managing Director and Chief Executive of NELFUND, Akintunde Sawyerr, described the allocation as a pivotal milestone in reshaping education financing in Nigeria. According to him, the levy provides the capacity to reach more students and strengthen the Fund’s systems. He, however, emphasised the need for strong collaboration with the National Assembly, the Ministry of Finance, and the Office of the Accountant-General to ensure the resources are properly appropriated, released, and communicated nationwide.
“The 25 percent allocation from the Development Levy marks a pivotal step towards transforming Nigeria’s education financing landscape. It gives us the capacity to reach more students, strengthen our systems, and deliver on our mandate more effectively. However, for this opportunity to translate into real impact, we need strong collaboration with the National Assembly in the appropriation process and in nationwide sensitisation, while also working with the Ministry of Finance and the Office of the Accountant-General to ensure efficient releases,” Sawyerr said.
NELFUND reaffirmed its commitment to accountability, transparency, and responsible fund management, assuring stakeholders that every allocation will be directed towards broadening access to education and strengthening the country’s human capital development.
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