Nigerians spent $38.17 million on overseas education from February to March 2024, according to the Central Bank of Nigeria (CBN) Statistical Bulletin for the first quarter of 2024.
The amount represents an 83 percent decrease from the $218.87 million spent during the same period last year. However, on a quarterly basis, it represents a 54 percent increase from the $24.82 million spent in the fourth quarter of 2023.
The year-on-year decline in foreign exchange (FX) spending overseas coincided with a sharp drop in international student enrolment at UK universities earlier this year.
The study, which included 73 institutions by Universities UK, found a sharp decline in international student enrolment, particularly in postgraduate programmes. This January, there was a 44 percent drop in such students compared to the year before, a sharper decline than expected.
This sharp decline in the number of international students, who often pay high fees for postgraduate studies, poses financial challenges for universities.
Furthermore, data from Enroly, which is used by around 60 universities, shows a decline in international students’ interest in studying in the UK, with savings apparently falling sharply year-on-year of the previous year.
In February, CBN Governor Yemi Cardoso said the cost of foreign education and medical tourism was responsible for Nigeria’s foreign exchange challenges.
In a detailed briefing to the House of Representatives, Cardoso highlighted that a whopping $40 billion has been spent on foreign education and healthcare, which contributed heavily to the depreciation of the naira.
The CBN governor expressed concern over the pressure on the foreign exchange market, further exacerbating the naira depreciation.
The process also requires a list of documents: duly completed e-Form A, proof of admission or course enrolment, invoice or invoice from education institution, and, in the case of postgraduate studies, the effects of a certificate of graduation or a relevant officially recognized statement.
In addition to the education fees rules, the CBN is implementing an annual limit of $5,000 for foreign currency related to medical expenses abroad.
Like the use of education expenses, medical reimbursement will be transferred directly from the BDC’s residential account to the medical center, supported by complete documentation.
This document includes a completed e-Form A, a referral letter from a specialist or a recognized hospital in Nigeria, appropriate travel documents and a letter from a doctor abroad stating medical expenses afterwards.
The CBN finally approved this proposed guideline in May 2024 to further curb the amount of FX spending on foreign education and medical tourism.
