The Central Bank of Nigeria (CBN) has announced an increase in the maximum foreign exchange remittance for tuition payments by Nigerian students studying abroad. The new limit is set at $25,000 per semester, up from the previous $15,000. This adjustment is part of broader reforms aimed at improving the availability of foreign exchange and restoring confidence in the FX market.
New Tuition Remittance Limit
The revised limit is detailed in the newly released Foreign Exchange Manual, Fourth Edition, published by the CBN on Wednesday. The changes will take effect on June 1, 2026. Under the new framework, eligible undergraduate and postgraduate students can apply to authorized dealer banks to remit up to $25,000 per semester for tuition payments to foreign higher education institutions.
Previously, tuition remittances were capped at $15,000 per semester and restricted to two semesters per academic year. The new limit applies per student, per semester, for both undergraduates and postgraduates.
Application Requirements
According to the CBN, applicants for tuition remittances must submit Form 'A' along with relevant supporting documents. These include admission documents, a tuition fee schedule, a valid international passport biodata page, and a student identification card for returning students. Postgraduate applicants must also provide a first degree certificate or a certified copy.
Separate Treatment of Tuition and Maintenance
The manual clarifies that tuition and maintenance allowances will continue to be treated separately. If both expenses are billed together, remittances will be made directly to the educational institution. However, for students living off-campus or where maintenance costs are billed separately, maintenance allowances are capped at $5,000 per quarter and paid directly to the student.
The CBN also stated that foreign exchange remittances are not available for nursery, primary, secondary, foundation, or A-level education abroad.
Part of Broader Reforms
The increase in the tuition remittance limit is part of a package of reforms under the new FX Manual. Other changes include raising allowable advance payments on imports to 30% from 15%, and adjustments to the Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) regimes. Under the new PTA and BTA guidelines, 25% of approved requests may be disbursed in cash, while the remaining 75% will be disbursed electronically through approved payment channels.
Impact on Naira and Forex Reserves
Earlier reports indicated that Nigeria's foreign exchange reserves recorded their first increase in five months, boosting the CBN's efforts to help the naira recover its value. The CBN reiterated its commitment to intervene in the foreign exchange markets to increase liquidity and ease pressure on the naira. Forex reserves rose by $1.72 million over the weekend to close at $33.22 billion.
