Nigerian Education Loan Fund (NELFUND) has urged the National Assembly to support full implementation of the newly approved Development Levy. Saying the measure could mark a turning point for student loan access across the country.
Under the National Taxation Act (NTA 2025), which takes effect January 1, 2026, a 4 per cent Development Levy will be imposed on the assessable profits of taxable companies. Small and non-resident firms as well as profits subject to hydrocarbon tax shall be excluded.
NELFUND has been allocated 25 per cent of the levy proceeds, a move the Fund described as a “pivotal opportunity” to expand access to affordable education loans for Nigerian students.
Conditions for Success
In a statement signed by Managing Director/Chief Executive, Mr. Akintunde Sawyerr, NELFUND said the new funding stream provides a stronger base to deliver on its mandate but warned that impact would depend on three key factors.
These, it said, include timely appropriation by the National Assembly; efficient fund releases by the Ministry of Finance and the Office of the Accountant-General of the Federation; and robust nationwide sensitisation.
“The 25 per cent 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,” Sawyerr stated.
“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,” he added.
Strategy to Reach More Students
To fully harness the levy’s potential, NELFUND said it would:
1. Launch nationwide awareness campaigns to educate students, families and institutions on how to access loans under the new scheme.
2. Invest in digital platforms and infrastructure for transparent, user-friendly loan applications and disbursement.
3. Strengthen partnerships with tertiary institutions to streamline administration and repayment processes.
4. Expand inclusivity by targeting underserved regions and vulnerable groups to ensure no eligible student is left behind.
Commitment to Transparency
NELFUND reaffirmed its commitment to accountability, transparency and prudent fund management, assuring stakeholders that every allocation would be directed toward expanding access to education and strengthening Nigeria’s human capital base.