The Central Bank of Nigeria has revealed staggering figures showing Nigerian citizens spent a massive $1.39 billion on foreign education during the first six months of 2025. This represents a significant 20% increase compared to the same period in 2024, highlighting growing concerns about educational quality within the country.
Record Outflows Amid Naira Challenges
According to the CBN's Balance of Payments report, the education-related outflows surged by 20% in dollar terms and an even more dramatic 38% in naira terms. This substantial difference reflects the impact of exchange rate fluctuations, with the naira trading at an average rate of N1,553.6 to the dollar during the reviewed period.
The first-half 2025 figure marks the highest education spending abroad since 2021, occurring despite the naira showing some stability in 2025 following the foreign exchange reforms implemented in mid-2023. Experts note that applications for tertiary and postgraduate studies overseas continue to remain strong despite the higher costs.
Zero Revenue From Foreign Students
In a stark contrast to the massive outflows, Nigeria recorded zero earnings from foreign students under the "Education" category in its services trade balance. This means the country generated no revenue from international students choosing to study in Nigeria during the same period.
Analysts attribute this growing trend to multiple factors affecting Nigeria's tertiary education system, including ongoing security concerns, unstable academic calendars due to frequent strikes, aging infrastructure, and limited economic opportunities for graduates.
Private Spending Overshadows Public Investment
The scale of private spending on foreign education becomes even more alarming when compared to public education funding. The $1.39 billion (approximately N2.16 trillion) spent by Nigerians on overseas education in just six months nearly equals the federal government's entire 2025 education budget of N2.52 trillion.
This comparison becomes even more striking considering the government's allocation represents only about 5% of total national spending for over 200 million citizens, far below UNESCO's recommended 15-20% benchmark for education funding.
Between 2020 and the first half of 2025, Nigerians have spent an estimated $11.1 billion (N9.9 trillion) on education abroad. This massive amount equals approximately 2.6% of Nigeria's annual nominal GDP and, in some years, has surpassed the combined federal and state education budgets.
Amaka Okeke, Executive Director for Business Development at Optiva Capital Partners, explains that families increasingly view overseas education as an investment in more stable futures for their children. "People increasingly pursue second citizenship as a way to access global opportunities," she noted, adding that "prosperity improves when borders do not limit people's ambitions."
The report emerges as the United States resumed processing student visas for Nigerians in June 2025, after a temporary halt of over a month. The updated visa guidelines now include screening of applicants' social media activities and increased application fees from $160 to $185 for non-immigrant visa categories.
