The Nigerian Education Loan Fund (NELFUND) has urged the National Assembly to provide strong legislative support to ensure the effective implementation of the new Development Levy, which takes effect on January 1, 2026.
The levy, introduced under the National Taxation Act (NTA 2025), imposes a 4% charge on the assessable profits of taxable companies, excluding small businesses, non-resident firms, and hydrocarbon tax-related profits. NELFUND is set to receive 25% of the proceeds, a share it described as a “pivotal opportunity” to expand affordable education loans for Nigerian students.
In a statement signed by its Managing Director/Chief Executive, Mr. Akintunde Sawyerr, the Fund noted that the fresh revenue stream provides a firmer base to deliver on its mandate. But Sawyerr stressed that impact will depend on 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 broad public sensitisation.
To fully harness the levy, NELFUND listed key priorities, including:
Launching nationwide campaigns to educate students, families, and institutions on loan access.
Investing in digital platforms to enable transparent and user-friendly loan applications and disbursements.
Strengthening collaboration with tertiary institutions to ease administration and repayment.
Expanding inclusivity by targeting underserved regions and vulnerable groups.
“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 this requires strong collaboration with the National Assembly, the Ministry of Finance, and the Office of the Accountant-General.”
He reaffirmed NELFUND’s commitment to accountability, transparency, and prudent management, assuring that all funds will be channeled toward expanding access to education and strengthening Nigeria’s human capital.
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