Business a.m.
The Nigerian diaspora’s expenditure on education overseas plunged between January and March 2024, with $38.17 million spent, representing a 83 percent drop compared to the $218.87 million spent in the same period in 2023, according to the Central Bank of Nigeria’s first-quarter statistical bulletin published recently.
Although a significant decline in FX expenditure for foreign education was observed between the first quarter of 2024 and the same period in the previous year, there was a 54 percent increase from the $24.82 million spent in the last quarter of 2023.
This increase, despite a steep annual decline, coincided with a fall in international student enrolment at universities in the United Kingdom, highlighting an ongoing trend of reduced educational opportunities abroad for Nigerian students.
In February 2024,Yemi Cardoso, the CBN governor, recognised the growing concern over the substantial amount of foreign exchange spent on overseas education and healthcare by Nigerians.
During a comprehensive presentation before the House of Representatives, Cardoso disclosed that $40 billion had been expended on these sectors in recent years, which exacerbates the devaluation of the Nigerian Naira. The CBN governor expressed deep concern over the increasing pressure in the foreign exchange market, as forex scarcity continues to drive down the value of the Naira.
The revised regulations for Bureau De Change (BDC) operators in Nigeria introduced by the CBN in February 2024 include several key provisions aimed at reducing the outflow of foreign exchange through educational and medical expenses.
For education-related transactions, BDCs are restricted to selling a maximum of $10,000 per customer annually for school fees. These transactions must be conducted through the BDC’s domiciliary account with a Nigerian bank and directly paid to the educational institution.
The documents required for educational transactions under the new CBN regulations are: a duly filled out e-Form A, proof of admission or course registration, an invoice or bill from the educational institution, and for postgraduate studies, a copy of the undergraduate degree certificate or an officially verified statement of results.
