The financial strain in Nigeria has led to a significant 65% decrease in deposits made by Nigerian students for the upcoming academic session in UK universities, starting in September 2024, according to a report by the Financial Times of London.
This decline is mirrored by a 44% drop in payments from Indian students, another major group of international students in the UK. Overall, deposits from international students have decreased by 35% compared to August 2023, posing financial challenges for UK universities that heavily rely on international tuition fees.
Paul Kett, a senior education adviser at PwC UK, highlighted the variability in impact across institutions, depending on their market focus and attractiveness. Despite a slight recovery since a 57% drop in May, the number of international students applying to UK universities remains significantly lower than in recent years.
Education Secretary Bridget Phillipson emphasized the new Labour government’s commitment to welcoming international students, contrasting the approach with the previous Conservative administration’s efforts to reduce migration figures.
Meanwhile, smaller markets like Kenya and Nepal have shown increased demand, while the UK’s ongoing restrictions on family visas for graduate students continue to pose competitive challenges compared to other countries. The Office for Students has begun preparing for potential university insolvencies, as financial forecasts by universities remain overly optimistic about future growth in international student numbers.
Despite these challenges, recent data from the Central Bank of Nigeria showed that Nigerians spent $896.09 million on foreign education in the first half of 2023, with a significant portion directed to the UK. Foundation courses in the UK currently cost between £10,000 and £15,000, with additional yearly expenses of around £8,000 per student.
