Reports from the CBN showed that Nigerians spent $1.38 billion in international education expenses between January to September of 2022, the lowest ever since 2016. The figure is $500 million lower than the $1.88 billion spent within the same time frame in 2021.
The figure indicates money spent on tuition, living expenses, accommodation, and other related costs. The decrease in figures, however, has a backstory. Between January and June 2022, the UK government granted over 65,000 study visas to Nigerians, a 223% year-on-year increase.
In a survey by World Bank, it was discovered that 50% of young Nigerians want to leave the country. Also, in 2022, the Nigerian Immigration Service issued 1,899,683 passports, which is the highest issued in a single year. For those seeking to emigrate, pursuing education is the most straightforward option, as education visas are often the most accessible type of visa under the visa system of many countries.
What is responsible for the decline?
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Prospective students having to seek funding individually is believed to be one of the factors that contributed to the decline, as reported by Ventures Africa. Due to a shortage of foreign exchange for a significant portion of the year, Nigeria encountered a significant forex crisis in 2022, resulting in a decrease in the issuance of Form A by banks. Form A is the form used to source FX from the CBN in Nigeria.
Another factor is the new trend of foreign universities that require aspirants to pay only a fraction of their tuition as an initial deposit before they resume. As a result, many Nigerian students have established a pattern of paying a portion of their tuition fees while in Nigeria and seeking the remainder while pursuing their studies in foreign countries. Many of these schools also accept payment in installments.
For example, at Nottingham Trent University in the UK, students can pay their fees in three installments every semester.
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Overall, even though Nigeria is spending less of its foreign reserves on international education, its citizens are contributing a higher proportion to the GDP of foreign nations. The necessity to earn a living and cover tuition expenses is motivating contributions to the economy of these countries. As an illustration, the average international student in the UK is believed to contribute over £100,000 to the economy annually.
