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The Nigerian Education Loan Fund, NELFUND, has called for stronger collaboration with the National Assembly to ensure the effective implementation of the new Development Levy, which takes effect on January 1, 2026.
Under the recently approved National Taxation Act (NTA 2025), a 4% development levy will be imposed on the assessable profits of taxable companies, excluding small and non-resident firms as well as profits subject to hydrocarbon tax.
NELFUND is allocated 25% of the levy proceeds, a move the Fund described as a “pivotal opportunity” to expand access to affordable education loans for Nigerian students.
In a statement signed by its Managing Director/Chief Executive, Mr Akintunde Sawyerr, NELFUND said the new funding stream provides a stronger base for it to deliver on its mandate.
However, the Fund stressed that success will depend on three key factors: 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.
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.
“The 25% allocation from the Development Levy marks a turning point in Nigeria’s education financing landscape,” Sawyerr said.
“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,” he added.
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