FG Allocates N940 Billion to TETFund for 2025 – A Game-Changer for Nigerian Education

By Achimi Muktar

In a bold and groundbreaking move, the Federal Government has allocated a staggering N940.5 billion to the Tertiary Education Trust Fund (TETFund) for the 2025 fiscal year, aiming to revolutionize the country’s education sector. The allocation, announced by President Bola Tinubu through Rakiya Iliyasu, Director of Tertiary Education at the Ministry of Education, is a key step towards enhancing the development of both manpower and infrastructure in Nigerian universities and colleges.

The announcement was made during the 42nd Founders' Day and 33rd Convocation of the Federal University of Technology, Minna (FUT Minna) on Saturday, signaling the government’s commitment to bolstering the nation’s educational foundation.

In his speech, President Tinubu highlighted the government's broader efforts to support students, with particular focus on the Nigerian Education Loan Fund (NELFUND). To date, over N104 billion has been disbursed to more than 600,000 students, helping them pursue their academic dreams across the country’s tertiary institutions.

"The goal is to make sure that our students have the resources they need to succeed, and our institutions have the infrastructure to offer quality education," Tinubu said.

The president also urged universities to intensify partnerships with industries, ensuring research efforts are aligned with the country’s developmental needs. He stressed the importance of universities playing a crucial role in driving national progress by addressing real-world challenges through innovation and collaboration.

While the allocation marks a significant investment in higher education, it comes with a notable shift in priorities for TETFund. Earlier in January 2024, Minister of Education Tunji Alausa revealed that TETFund would not finance new constructions in 2025. Instead, the focus would be on renovating and maintaining existing facilities, such as hostels, lecture theatres, auditoriums, and laboratories, to ensure a more efficient use of resources.

“One of our top priorities will be rehabilitating and improving existing infrastructures to the highest standards,” Alausa stated. “We need to ensure that what we already have is maintained and maximized.”

In addition to the funding boost, the federal government has proposed amendments to the TETFund Act, including a major restructuring of how funds are allocated. Under the proposed changes, 30% of TETFund’s revenue from the Federation Account will be diverted to NELFUND, providing more opportunities for students to access loans for their higher education.

Furthermore, the amendment caps NELFUND’s annual administrative expenses at just 5%, ensuring that the majority of the funds are directly allocated to student financial support, rather than administrative overhead.

For 2024, the federal government had already approved N643.4 billion for TETFund’s intervention, with universities receiving N1.9 billion, polytechnics N1.16 billion, and colleges of education N1.39 billion.

With this major 2025 allocation and strategic shifts in funding priorities, the government is sending a clear message: it is investing in the future of Nigeria’s education system and the students who will shape the country’s future.

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