New data from the Central Bank of Nigeria (CBN) exposes a substantial investment of $340.84 million by Nigerian students seeking admission to foreign universities during the first half of 2023. The findings, based on sectoral utilization data for foreign exchange transactions, reveal significant fluctuations and challenges within the country’s education sector.
In April 2023, foreign education expenses peaked at $40.54 million, followed by a slight increase to $48.81 million in May. However, June witnessed a marked decrease, with reported spending dropping to $32.61 million. A comparative analysis with the first quarter of 2023 reveals a notable decrease of $96.92 million, equivalent to a 44.28 percent decline.
Furthermore, the data indicates a substantial performance drop of $124.42 million (50.5 percent) when compared to the second quarter of 2022. The figures suggest a concerning trend of reduced spending on foreign education services, with implications for both students and the local education sector.
Notably, remittances to foreign academic institutions lack significant reciprocity, raising concerns about the impact on the local education sector. Experts point to challenges faced by migrating students, including delays in banks processing Form A, leading to a reliance on Bureau de Change operators.
The surge in study visas for Nigerians revealed by the UK Home Office, with a 222.8 percent increase, underscores the growing trend of Nigerians pursuing education abroad. However, the Central Bank’s forex backlog and challenges in the official market drive individuals and businesses to the black market for dollar transactions.
Speaking on the matter, Dr. Anderson Ezeibe, the National President of the Academic Staff Union of Polytechnics, emphasized the negative impact of government underinvestment in the education sector. He highlighted infrastructure deficiencies, unhappy lecturers and students, and the need for comprehensive investment to eliminate the necessity for students to seek education abroad.
