Naira Devaluation: UK Universities tell Neusroom how they are stepping in to help Nigerian students

Babatunde Opeyemi has been dreaming of acquiring an international degree for more than three years. His previous attempts to study in the United States (US) and United Kingdom (UK) failed due to visa denials and insufficient funds to meet the tuition fees and proof of funds requirements. In March 2023, after months of planning and saving up to commence his journey to acquire a master’s degree in the UK in September 2023, he received one of the best pieces of news in his life when a UK university offered him admission to study for a master’s degree. However, his hope is now about to be dashed, no thanks to the devaluation of the Naira by the Nigerian government.

“After receiving the conditional offer, I quickly applied to pay the tuition fees deposit (£5,000) through Form A. I had the tuition fees ready, and proof of funds was not going to be an issue since I’ve been preparing for this for a long time. But unfortunately, the funds I’ve saved can no longer cover the tuition fees deposit due to the Naira devaluation, which has caused a huge disparity between Naira and Pounds, spiking the fees by over 60%,” distraught Babatunde told Neusroom. As a result, he is now considering deferring or forfeiting the admission.

“I’m not sure I can meet up with the payment to start my studies this September, and if I decide to defer my admission till January, the new UK government’s migration policy means I won’t be able to go with my dependent, whom I can’t leave behind for a year to study in the UK,” he said.

Many Nigerians are experiencing difficult times due to the rise in the price of fuel (due to the removal of fuel subsidy by the government), inflation and Naira devaluation, among others. This situation is not only affecting Nigerians living in Nigeria but also those living in the diaspora, especially those studying abroad or supporting children studying abroad and depend on the Naira to pay tuition fees.

As the global labour market becomes borderless with remote work making it possible for people to work with international organisations in countries far away from their home country, many young Nigerians are also exploring ways to acquire international certifications through distance learning and studying abroad to compete favourably for global opportunities with their counterparts from other parts of the world.

According to a report by the UK Home Office, 65,929 Nigerians were granted a sponsored study visa in the year ending June 2022, making Nigerians the third largest foreign student group in the UK behind India and China. A report by SBM Intelligence says Nigerian students and their dependants contributed about £1.9bn to the UK economy in the 2021/2022 academic year.

Due to the wide gap in the exchange rate from Naira to Dollar and Pound in the parallel market, Nigerians studying abroad prefer to use the Form A system to pay for their tuition fees at a relatively cheaper rate. The Form A system allows students to get forex at the Central Bank of Nigeria (CBN) rate to make payments.

*A view of the University of Dundee, July 2023. Photo: Michael Orodare*

In April 2023, when the Naira was around ₦‎740/dollar and ₦‎950/pound at the parallel market, it was ₦‎460/dollar and ₦‎573/pound at the CBN rate. With the devaluation of the Naira, there’s now a slim gap between the CBN rate and the parallel market. As of Monday, July 24, 2023, the Naira was ₦‎787/dollar and N1,100/pound at the parallel market, while at the CBN rate, it was ₦‎776/dollar and ₦‎1,008/pound.

The bottleneck involved in Form A, which was described as hectic during the immediate past administration of President Muhammadu Buhari, has now worsened with the devaluation of the Naira by the administration of President Bola Tinubu, as students and parents sponsoring their children to study abroad groan under the system.

“What this means is that prospective students who were supposed to pay £5,000 as a school fees deposit in April were supposed to pay ₦‎2.8m through Form A, and the cost of living would have been around ₦‎5.3m for an individual living outside London and around ₦‎10.6m for a family of two. But with the present devaluation of the Naira, the school fees are now around ₦‎5.1m, while the cost of living has risen to ₦‎9.3m for an individual and ₦‎18.6m for a family of two,” a Nigerian student in Lincoln told Neusroom.

Before applying for a visa, prospective students need to have the cost of living and their tuition fees balance in their bank account for a minimum of 30 days as proof of funds to show that they have enough money to finance their study and live in the UK throughout the period of their study. Some students were at the waiting stage when the Naira devaluation came into effect, forcing them to start looking for more funds. While the proof of funds does not affect Nigerian students already in the UK paying their school fees through Form A, it has been daunting.

What students and parents are saying

A Neusroom correspondent who recently visited Manchester, Leeds, and Bradford reports that students are finding it increasingly difficult to meet up with the deadlines set by their institutions.

“In a bid to beat the deadline set by the university to pay the balance of our children’s tuition fees, a lot of Nigerian parents like me have put money in our bank accounts and applied for Form A since around April, and we were waiting for the bank to debit us. The process typically takes around three to four months. Unfortunately, while we were waiting, the CBN introduced the tax clearance policy for Form A, then the government devalued the Naira, forcing many of us to start using other means to pay the fees to avoid missing the deadline,” a Nigerian parent with two children studying in the UK, who would not like to be named, told Neusroom. “With this development, it means we are now paying times two of what we were supposed to pay two months ago through Form A.”

A student intending to commence her studies at the University of Hull in September said she also cancelled her Form A application after the bank delayed for more than three months.

“Long before the Naira devaluation, I had applied for Form A for the payment of my tuition fee deposit since March. For three months, the bank did not treat my application. The account was funded, and they had moved the funds to book balance for six weeks without treating,” the student said. “I kept following up with my contact person at the bank. Then in June, they requested for tax clearance certificate, which I sent immediately. Immediately after the Naira float, the bank sent me an email informing me that they are going to treat my Form A request at ₦‎928/pound and they needed my approval to proceed. I had to cancel the application because I couldn’t afford the new rate, and I know a lot of students who have cancelled their Form A application because they couldn’t afford the new rate.”

A view of Abertay University, Dundee, July 2023. Photo: Michael Orodare.

Gbolahan Abdulfatai who has just been offered admission at a university in Northern Ireland said the Naira devaluation has affected his plans and forced him to borrow from family and friends.

“The funds I had budgeted is no longer sufficient for the tuition fees and Proof of Fund as the rate keeps going up. I have to keep borrowing from family and friends to be able to meet up with the payment,” he said. “Form A is no longer an option, so I have to speak to friends in the UK to make the (tuition fee deposit) payment on my behalf while I pay them in Naira at ₦‎1,020/pound. As at the time I was planning, the black-market rate was ₦‎900/pound.”

Another post-graduate student who moved into the UK in May 2023 said: “I thought I would pay my balance of my fees with naira through conversion, but the crash of naira has rendered my money useless. Now I have to source for pounds to balance my tuition fees.”

How UK Universities are stepping in

While Nigerian students in the UK and prospective students are trying to keep their heads above water in their quest for international degrees, some universities in the UK told Neusroom that they are aware of the crisis created by the devaluation of the Naira and are working with the students to address the issue and find a way out.

On Monday, July 24, 2023, Neusroom obtained an email sent by the University of Hull to its prospective students (September intakes), informing them of an extension to the deadline set for the payment of tuition fees deposit and advising them to explore other means to pay their tuition fees in order to meet the new date.

“We are contacting you today with advice on your tuition fee payments. This information is particularly important if you have chosen the Form A payment method. Since the update from the Central Bank of Nigeria in June 2023, the ‘official exchange rate’ of the Naira has devalued significantly,” the email read in part.

The University further advised:

“You may have previously chosen the Form A route to make a payment towards your postgraduate deposit because it was cheaper. Whilst this created significant delays in the payment reaching the University, this payment method was allowed because it unlocked better rates for students and applicants. Since the changes, the official rate and parallel rates are now interchangeable. It is no longer cheaper to use Form A and this payment method remains very slow. The deposit payment must have cleared your student record before 7 August 2023 for you to take up your studies with us.

“If you feel that the payment you have initiated will not arrive before 7 August 2023, we recommend you to:

• Make a payment through Flywire here in NGN and Flywire will convert at the parallel rate, or also in other major currencies. This payment will be received by the university in 3-5 days.

• Cancel your Form A application – which can be done by contacting your bank (please engage with your bank to identify their preferred route to cancel).”

*A copy of the email sent by the University of Hull to its prospective students on Monday, July 24, 2023.*

Spokespersons of the University of South Wales, Glasgow Caledonian University, and Robert Gordon University (RGU) told Neusroom they are aware of the issues being faced by Nigerian students and are working with them to offer help where necessary.

“We are aware of the impact that this is having on some students from Nigeria and prospective students who are looking to start their studies in September 2023. We are considering every student’s case individually and supporting them where we can,” a University of South Wales spokesperson told Neusroom in an email.

The situation has increased panic and anxiety among many Nigerian students whose universities are threatening to withdraw their status as students and pass their details to the Home Office, which may lead to their deportation from the UK.

Some Nigerian students at Ulster University, Birmingham, struggling to pay their tuition fees, claimed the university has not been supportive and has locked them out of the school’s online lecture room while threatening to withdraw their student status.

“The university has locked us out of the blackboard (the platform where we receive online lectures) and we are also unable to submit assignments due to the delay in payment of our school fees,” said an Ulster University student who spoke on condition of anonymity.

A part of an email sent by another university in Scotland to its students and seen by Neusroom read: “Once fees become overdue, it is University policy to make charges for late payment. These charges are 3.5% of your total tuition fee and/or residence fee.”

Although some Nigerian students who spoke to Neusroom acknowledged that some of their universities have been considerate with the deadline due to the delay with Form A, they are, however, asking for more flexibility and an extension of deadlines.

“My school has sent us an email to discuss with an advisor if we have any issues that may cause delays with the payment, and I’m sure they are willing to offer help or extend the deadline,” a Nigerian student in Northern Ireland told Neusroom.

A spokesperson for the Glasgow Caledonian University (GCU) with campuses in London and Glasgow said the university is “aware of the issues currently being faced by our Nigerian students, and we are working closely with our Students’ Association to provide support and signpost students to our support services.”

The university said it is encouraging any student who is experiencing difficulty in making a payment to speak to the University at an early stage.

“We value the diversity and contributions of international students in our institution, and we remain dedicated to fostering an inclusive and supportive environment for all,” the spokesperson said.

A spokesperson for RGU in Aberdeen, Scotland, also told Neusroom that it understands this is a very complex situation that Nigeria is facing, and “RGU is keen to reduce the anxiety of our students impacted by this period of economic uncertainty.”

“We have kept abreast of the financial difficulties that some of our current and future Nigerian students are facing, with the relevant departments responding quickly to work closely with those concerned, offering support and solutions such as extended admissions deadlines and flexible payment plans. We have also increased the level of information we share with our students on the current cost of living issues that exist in the UK to ensure that those from both Nigeria and around the world move to Aberdeen with a realistic budget to enjoy their student experience,” the spokesperson said.

A spokesperson of Wrexham Glyndwr University, Wales, also confirmed that the university is aware and doing its best to address the issue on an individual basis with its students and their agents.

“Unfortunately, we cannot issue a CAS to any student whose financial documents don’t meet the current UKVI requirements, as it will result in a visa refusal,” the spokesperson said.

The university, however, said while it is awaiting updates from the UK Home Office on the issue, “any student who wishes to defer their place at Wrexham can do so without any penalty. Anyone who wishes to discuss their individual situation can contact our International team.”

Some Universities like the University of Dundee, Abertay University in Dundee, University of Salford, and the University of Birmingham, among others remain tight-lipped about the issue and are yet to respond to Neusroom’s request for comment in over two weeks. As of the time of filing this report, a spokesperson of the University of Bradford is yet to revert with comment after acknowledging Neusroom’s email.