Federal Government Moves to Recover ₦500bn Unutilised TETFund in Nigerian Institutions

Federal Government Moves to Recover ₦500bn Unutilised TETFund in Nigerian Institutions

The Federal Government has directed all tertiary institutions in Nigeria to account for their unused Tertiary Education Trust Fund (TETFund) allocations within 30 days, warning that any unspent money will be reallocated and that officials who fail to comply will face sanctions.

The directive was issued by the Minister of Education, Dr. Tunji Alausa, on Thursday in Abuja during a meeting with heads of tertiary institutions.

Alausa expressed frustration over the continued underutilisation of TETFund resources, which are meant to improve infrastructure, learning facilities, and research capacity in Nigerian universities, polytechnics, and colleges of education.

“Institutions must submit reconciled reports of all unutilised funds within 30 days, which will be jointly verified. Unused funds may be redirected to priority projects, and carrying them over without strong justification will no longer be allowed,” the minister said.

He added that procurement plans must align with approved interventions, and that approvals should be fast-tracked to avoid further delays in project execution.

The new directive follows repeated warnings from TETFund itself, which in July 2025 threatened to delist institutions that fail to access or utilise their allocations. According to the House of Representatives Committee on TETFund, about ₦500 billion in funds remained idle in the Central Bank of Nigeria as of August 2024.

The Academic Staff Union of Universities (ASUU) also raised similar concerns, revealing that as much as ₦600 billion in TETFund allocations remain unutilised by institutions.

“There’s a huge sum of money in the Central Bank belonging to institutions that have not been utilised. Some have had the funds for 10 to 15 years without using them,” said Prof. Victor Osodeke, former ASUU President and current NEC member. “None of the Vice-Chancellors responsible for this has been punished. This must change.”

Alausa said the government will now introduce capacity-building programmes to strengthen project management, compliance, and financial reporting among institutional officers.

To promote transparency, a public dashboard will be launched to display disbursement and utilisation data, while institutions will be required to publish regular project progress reports.

“TETFund must lead with professionalism, enforce compliance, and ensure transparency. Institutional heads should drive urgency and accountability, while auditors and oversight bodies must flag irregularities,” the minister stated.

The 2025 TETFund allocation, worth ₦1.6 trillion, prioritizes campus security, healthcare, and direct interventions across Nigeria’s higher education sector.