Investors’ anxiety is mounting following reports of President Bola Tinubu’s directive to the Nigerian Education Loan Fund (NELFUND) to access approximately ₦242 billion in unclaimed dividends. The development has raised fresh concerns over the legal status of the funds, investors’ rights and the potential implications for confidence in Nigeria’s capital market.
The issue is not whether student financing deserves government support. It does. The question is whether money belonging to investors can be appropriated for another purpose without due justification and, more importantly, without following the appropriate legal process. In real terms, such a move could have dire consequences for institutional consistency, investor protection and confidence in the market.
The first question is: what happens to the Unclaimed Funds Trust Fund (UFTF) established under the existing framework? The Finance Act 2020 provides for dividends unclaimed for at least six years to be transferred to the UFTF, pending claims by their rightful owners. The Securities and Exchange Commission (SEC) subsequently reinforced the framework through its 2025 directive, while Section 93 of the Investments and Securities Act 2025 provides for the treatment of unclaimed dividends under SEC rules and regulations.
Has the UFTF been abolished, amended or replaced? If not, on what legal basis can the funds be redirected to another institution? A presidential directive may establish policy direction, but it should not casually override a statutory framework enacted by the National Assembly. If the government intends to change the destination or legal character of these funds, it should do so transparently through the appropriate legislative process.
The second question concerns NELFUND. There is no doubt that student financing…
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