The need for stronger collaboration between the Nigerian Education Loan Fund (NELFUND) and the National Assembly for effective implementation of the new development levy, which takes effect on January 1, 2026, has been advocated.
In a statement by the Managing Director and Chief Executive of NELFUND, Mr Akintunde Sawyerr, the new funding stream provides a stronger base for it to deliver on its mandate.
The statement indicates that under the recently approved National Taxation Act (NTA) 2025, a 4 per cent development levy will be imposed on the profits of taxable companies to be assessed, excluding small and non-resident firms as well as profits subject to hydrocarbon tax.
NELFUND is 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.
However, the Fund stressed that success would depend on three key factors, including 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.
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To fully harness the levy’s potential, NELFUND outlined its strategic priorities, which include launching nationwide awareness campaigns to educate students, families, and institutions on how to access loans under the new scheme and investing in digital platforms and infrastructure for transparent, user-friendly loan applications and disbursement.
Others are strengthening partnerships with tertiary institutions to streamline administration and repayment processes and expanding inclusivity by targeting underserved regions and vulnerable groups to ensure no eligible student is left behind.
According to the statement, “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.
‘’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”
