The University of Dundee, one of Scotland’s academic powerhouses, is on the edge of financial ruin, announcing 600 redundancies last week to address a staggering £30 million deficit. The crisis, threatening the institution’s future and financial stability, stems from the decline in international students and internal mismanagement.
Interim Principal Professor Shane O’Neill has pointed fingers at finance officers, claiming the deficit’s true scale lurking for years only recently came into sharp focus for senior leadership.
At the heart of this meltdown is the 2023 Nigerian currency crisis. In June of that year, the sharp devaluation of the naira slashed the purchasing power of Nigerian students, who made up a significant portion of Dundee’s international cohort. In 2022-23, nearly 1,300 Nigerian students studied at Dundee outnumbering those from Europe, the Middle East, and North America combined. With tuition fees comprising roughly a third of the university’s income, this sudden drop in revenue hit hard.
Similarly, the devaluation of the Nigerian naira plunged Nigerian students at Teesside University, UK, into a financial and emotional crisis in May 2024, resulting in their removal from courses and orders to leave the country. The plummeting currency value depleted their savings, making it impossible for many to pay tuition fees on time, a situation worsened by the university’s shift from seven to three payment installments. Approximately 60 students, reported to the Home Office after missing payments, were blocked.
Over-reliance on Foreign Fees Exposed
Dundee’s dependence on international students, particularly from Nigeria, left it vulnerable when applications from overseas plummeted. Across the UK, universities reported a 37% drop in applications in February 2024 compared to the prior year.
Robert Gordon University in Aberdeen, similarly reliant on Nigerian students, described the decline as numbers falling “off a cliff.” Dundee’s failure to bolster recruitment of Scottish students worsened the situation, cutting off vital Scottish Government funding for “free” tuition and reducing rental income from university housing. Professor O’Neill has conceded the institution “performed poorly” in this area, a critical misstep as the financial house of cards began to collapse.
Just two years ago, Dundee’s finances painted a rosy picture. The university generated nearly £500 million annually for the city’s economy and triple that for the UK, supporting 6,700 jobs one in 12 positions in Dundee and educating nearly 13,000 students. Now, that legacy hangs in the balance.
Extravagance Amid Crisis
While the Nigerian crisis dealt a severe blow, Dundee’s woes were compounded by lavish spending at the top. Former Principal Andrew Atherton resigned amid controversy over unpaid rent for his luxury university accommodation, having earned £10,000 weekly during his tenure.
His successor, Professor Iain Gillespie, appointed in 2020, received a £250,000 annual salary, £44,000 in pension contributions, and a £16,000 “disruption allowance.” In December 2022, The Courier exposed £50,000 in executive expenses over five years, including VIP dinners, hotels, and relocation costs.
Wendy Alexander, ex-Scottish Labour leader and a senior official, claimed the highest amount of over £12,000 featuring £1,200 for hotels and meals during an eight-day Southeast Asia trip in January 2019. She resigned in November 2024, shortly before her appointment to the House of Lords by the UK Labour Government. Meanwhile, Professor Gillespie’s £7,000 business-class jaunt to Hong Kong in 2023 for a two-day visit raised eyebrows, though university sources insist it secured £75,000 in income and donations.
The fallout has triggered a wave of resignations. At least five senior officials, including Gillespie in December 2024, have stepped down in recent months, alongside changes in the university’s governing court.
Scotland’s Higher Education Minister, Graeme Dey of the SNP, has criticized the “unwise” over-reliance on Nigerian tuition fees, a sentiment echoing across institutions now scrambling to adapt.
A City and Institution at Risk
Dundee University’s crisis is more than a balance-sheet disaster it’s a threat to the city’s economic fabric and Scotland’s higher education reputation. Once a cornerstone of prosperity, the institution now faces an uncertain future, its downfall a cautionary tale of global vulnerabilities and unchecked excess. As redundancies loom and the £30 million black hole deepens, the question remains: can Dundee recover, or has the damage been done?
