NELFUND PUSHES FOR 25% SHARE OF DEVELOPMENT LEVY, URGES NASS BACKING

The Nigerian Education Loan Fund (NELFUND) has appealed to the National Assembly to ensure that its allocated 25% share of the new Development Levy under the National Taxation Act (NTA 2025) is protected, fully appropriated, and effectively utilised for expanding access to student loans.  

The Development Levy, which takes effect from January 1, 2026, mandates a 4% levy on assessable profits of taxable companies (excluding small, non-resident companies and profits from hydrocarbon taxes). Under the Act, 25% of the proceeds from this levy are earmarked for NELFUND, earmarked to strengthen education financing across Nigeria.  

NELFUND’s Managing Director, Akintunde Sawyerr, emphasized that mere legislation is not enough; the implementation must be transparent, efficient and include strong oversight. He listed the critical enablers for success: prompt appropriation by the National Assembly, efficient fund releases by the Ministry of Finance and the Office of the Accountant-General, and widespread public sensitisation so students, families and institutions understand how to access the loans.  

The Fund also proposed an ambitious framework to ensure effective deployment. Among its priorities are launching nationwide awareness campaigns, strengthening partnerships with tertiary institutions to streamline application and repayment, upgrading its digital infrastructure for better service delivery, and targeting vulnerable and underserved communities so no eligible student is left behind.  

Supporters believe this levy could be transformational for Nigeria’s education sector, helping to reduce financial barriers for students from low-income households and strengthen human capital development. However, there remains concern among stakeholders about possible bottlenecks in appropriations and disbursement, and whether the system will ensure accountability of how funds are used.