As Nigeria gears up for the implementation of the new Development Levy on January 1, 2026, the Nigerian Education Loan Fund (NELFUND) has urged stronger collaboration with the National Assembly to guarantee full realisation and effective deployment of its 25% allocation from the levy.
The Fund stressed that timely appropriation, efficient fund releases, and broad-based sensitisation are crucial to harnessing the transformative potential of this financing window in widening access to affordable student loans.
The newly enacted National Taxation Act (NTA 2025) imposes a 4% Development Levy on the assessable profits of taxable companies, excluding small businesses, non-resident companies, and hydrocarbon tax profits. Under this law, NELFUND is entitled to 25% of the levy’s proceeds—an allocation expected to significantly boost education financing for millions of Nigerian students.
While the new stream of funding strengthens NELFUND’s financial base, the Fund emphasised that its impact will hinge on two critical factors: prompt appropriation by the National Assembly and efficient disbursement by the Ministry of Finance and the Office of the Accountant-General of the Federation.
Equally vital, NELFUND said, is nationwide sensitisation to ensure that students, families, and institutions are fully aware of and prepared to access the loan opportunities.
Outlining its plans, the Fund pledged to:
- Expand sensitisation campaigns nationwide to raise awareness on accessing loans under the new system.
- Invest in digital platforms for transparent, user-friendly application and disbursement processes.
- Strengthen collaboration with tertiary institutions to simplify loan administration and repayment.
- Deepen inclusivity by targeting underserved regions and vulnerable groups, ensuring no eligible student is excluded.
Managing Director/CEO of NELFUND, Mr. Akintunde Sawyerr, described the allocation as a game-changer for education financing.
“The 25% allocation from the Development Levy marks a pivotal step towards transforming Nigeria’s education landscape,” he said. “It gives us the capacity to reach more students, strengthen our systems, and deliver on our mandate more effectively.
“But for this opportunity to deliver real impact, we need strong collaboration with the National Assembly in the appropriation process, as well as with the Ministry of Finance and the Office of the Accountant-General to guarantee efficient releases. Together, we can build a more inclusive system where no Nigerian student is denied education because of financial constraints.”
NELFUND reaffirmed its commitment to accountability and transparency, assuring stakeholders that every naira received will be channelled towards expanding access to education and strengthening Nigeria’s human capital development.
