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- CBN records zero earnings from foreign students
- Insecurity, economic instability fueling migration –Experts
By Uche Usim
Despite relentless wailing over worsening economic stranglehold, Nigerians spent about $1.39 billion (N2.16 trillion) on foreign education in the first half of 2025.
The humongous figure is a significant increase compared to the same period in 2024.
The latest figures from the Central Bank of Nigeria (CBN) show that spending rose by 20% in dollar terms and 38% in naira, based on an average exchange rate of N1,553.6 to the dollar during the period.
The data, which forms part of the CBN’s Balance of Payments (BoP) report, paints a clear picture of the growing exodus of Nigerians in search of better educational and economic opportunities abroad.
At the same time, the report reveals that Nigeria earned absolutely nothing under the “Education” category in its services trade balance.
In simple terms, while the country spends heavily to send its citizens abroad, it earns virtually no revenue from foreign students coming to Nigeria.
The imbalance, experts noted, reflects a deepening crisis in the local education system, with heightened banditry and terror scaremongering worsening the narrative.
According to records, the $1.39 billion spent in just six months is the highest half-year education outflow since 2021.
What makes the figure even more striking is that it comes at a time when the naira has suffered significant depreciation following the CBN’s foreign exchange liberalisation reforms of mid-2023.
Even though the exchange rate has been more stable in 2025 compared to the dramatic swings of 2024, Nigerians still flocked overseas in large numbers for tertiary and postgraduate studies.
Experts say several long-standing problems continue to push families toward foreign education. These include the declining quality of teaching in Nigerian universities, frequent strikes by lecturers, dilapidated facilities, overcrowded classrooms and the slow pace of academic calendars.
According to analysts, “insecurity and socio-economic instability are also fueling migration,” as many middle and upper-class families now see foreign education as a route to long-term relocation.
Another reason is the deep desires to acquire second passports.
According to Amaka Okeke, Executive Director of Business Development at Optiva Capital Partners, true prosperity begins when borders no longer limit ambition.
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She added that second citizenship offers freedom, security and access to global possibilities.
For many parents, sending their children abroad is no longer just about acquiring degrees but an investment in safer and more stable futures.
To this end, they are prepared to borrow heavily, sell their movable and immovable assets just to fund their wards’ offshore education.
The scale of foreign education spending becomes even more glaring when compared with government funding for the sector.
Between 2020 and the first half of 2025, Nigerians spent an estimated $11.1 billion, or about N9.9 trillion, on tuition and related costs abroad.
This amount is equivalent to about 2.6% of the country’s annual nominal GDP over the same period and, in many years, surpasses the combined education budgets of federal and state governments.
For instance, the Federal Government allocated N2.52 trillion to education in the 2025 national budget roughly 5% of total government spending.
The allocation falls far below the 15–20% recommended by UNESCO for countries aiming to strengthen their education systems.
Yet, in the first six months of 2025 alone, Nigerian households spent nearly the same amount, N2.16 trillion, on foreign education. This means private spending on overseas schooling in half a year almost equaled the government’s entire year-long budget for education.
Despite these massive outflows, the Nigerian education sector attracts almost no foreign investment.
Data from the National Bureau of Statistics shows that only $150,000 entered the sector as capital importation in the last 10 years, a sign of weak investor confidence.
Bank lending to the sector has also dropped sharply.
The CBN reports that as of September 2025, total credit to education stood at N69.7 billion, a 22% decline since January. Analysts say this shows financial institutions are becoming more cautious about funding local education projects.
However, there are signs the foreign study rush may slow down, at least temporarily. Several major destination countries, including the United States, United Kingdom, Canada and parts of Europe, have tightened their immigration and student visa rules. Reports show growing visa refusals, especially from US embassies, which could affect the number of Nigerian students gaining entry. Rising tuition fees abroad, high living costs and Nigeria’s currency challenges may also force families to rethink or delay foreign study plans in the coming months.
