The Nigerian Education Loan Fund has urged closer cooperation with the National Assembly to guarantee smooth implementation of the newly introduced development levy scheduled to take effect on January 1, 2026.
The levy, introduced under the National Taxation Act, places a 4 percent charge on the profits of taxable companies, excluding small businesses, non-resident firms, and earnings already covered under hydrocarbon tax.
Under the arrangement, NELFUND is to receive 25 percent of the levy proceeds. The Fund described this allocation as a “pivotal opportunity” to scale up access to affordable education loans for Nigerian students.
According to a statement signed by its Managing Director/Chief Executive, Mr. Akintunde Sawyerr, the levy represents a sustainable financing stream that strengthens NELFUND’s capacity to fulfil its mandate.
The Fund, however, emphasized that achieving this goal rests on three conditions: prompt approval by the National Assembly, efficient release of funds by the Ministry of Finance and the Office of the Accountant-General of the Federation, and widespread sensitisation across the country.
To maximise the benefits of the levy, NELFUND outlined several strategic focus areas. These include launching a nationwide awareness campaign to guide students, families, and institutions on accessing the loan scheme, investing in digital platforms to ensure transparent and user-friendly loan application and disbursement, deepening collaboration with tertiary institutions for smoother administration and repayment, and broadening inclusivity to reach underserved communities and vulnerable groups.
“The 25 percent allocation from the development levy marks a turning point in Nigeria’s education financing landscape. It equips us to reach more students, strengthen our systems, and 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,” Sawyerr said.
NELFUND also reiterated its pledge to accountability, transparency, and prudent management of resources, assuring stakeholders that every kobo allocated will be directed toward widening access to education and building Nigeria’s human capital.
