Nigerians spent $38.17 million on foreign education expenses between January and March 2024, a significant 83 per cent decrease from the $218.87 million recorded during the same period last year.
This is according to the quarterly statistical bulletin of the Central Bank of Nigeria (CBN) for the first quarter of 2024. However, there was a notable 54 per cent increase in spending compared to the $24.82 million spent in the fourth quarter of 2023.
The year-on-year decline in foreign exchange (FX) spending on education aligns with a reduction in international student enrollment at UK universities earlier this year.
A survey by Universities UK (UUK) across 73 institutions revealed a notable drop in international postgraduate enrollments, with a 44 percent decrease in January compared to the previous year.
Data from Enroly, a platform used by around 60 universities, also indicated a drop in interest among international students in studying in the UK, evidenced by a significant decrease in deposit payments compared to the previous year.
In February, CBN Governor Yemi Cardoso noted that the amount spent on foreign education and medical tourism contributes significantly to Nigeria’s foreign exchange challenges.
Cardoso highlighted that an alarming $40 billion has been spent on foreign education and healthcare, contributing to the devaluation of the Naira.
He emphasised the pressure on the foreign exchange market amidst forex scarcity, which further depletes the naira’s value.
While forex spending on education services decreased year-on-year, there was a significant increase in spending on health-related and social services.
CBN data shows a 122 per cent increase in spending from $1.04 million in the first quarter of 2023 to $2.31 million in the first quarter of 2024.
Additionally, there was a 485 per cent increase from $0.39 million in the fourth quarter of 2023.
In February, the CBN introduced stringent measures on the purchase of foreign currencies through Bureau De Change (BDC) operators, specifically focusing on transactions related to overseas education and medical expenses.
The CBN’s revised regulatory guidelines for BDCs in Nigeria include a cap of $10,000 per customer annually for foreign currency purchases for school fees, requiring transactions to be conducted through the BDC’s domiciliary account with a Nigerian bank and directly paid to the educational institution.