UK universities are grappling with a significant drop in deposits from Nigerian students for the upcoming academic session starting in September. A report by the Financial Times has revealed that payments from Nigerian students have fallen by 65% compared to last year, a stark indicator of the economic challenges currently facing Nigeria.
The report also highlights a broader trend, with deposits from Indian students declining by 44% over the same period. Both Nigeria and India are among the top three countries contributing to the League of International Students in the UK, making the downturn particularly concerning for higher education institutions that heavily rely on these markets.
Data from Enroly, a web platform used by a third of international students for managing enrollment, shows a 35% overall drop in deposits for UK university courses this month compared to August 2023. This decline, although slightly improved from a 57% drop in May, still poses a significant threat to the financial stability of many universities.
Paul Kett, a senior education and skills adviser at PwC UK, noted that some universities might need to take “further significant action to secure their financial sustainability” as they navigate these challenging times.
The current downturn follows a period of uncertainty exacerbated by the previous Conservative government’s immigration policies, which had targeted reductions in overall migration figures. However, the new Labour government, led by Education Secretary Bridget Phillipson, has signaled a more welcoming stance towards international students, hoping to reverse the negative trends.
Despite these efforts, the recovery remains slow, with smaller markets like Kenya and Nepal showing increased demand, while the larger, traditionally strong markets like Nigeria and India continue to decline.
Jeffrey Williams, Chief Executive of Enroly, pointed out that while there are “early signs” of recovery, the international environment for UK universities remains volatile. “Concerns regarding the potential elimination of the postgraduate route work visa have been assuaged,” Williams said, attributing this partial recovery to the new government’s stabilizing policies.
Harry Anderson, Deputy Director of Universities UK International, emphasized the competitive challenges faced by UK institutions, particularly due to the ban on most graduate students bringing family members—a policy retained by the Labour government. This contrasts with competitor destinations like Australia and Canada, which allow students to bring their families.
The Office for Students (OfS), the sector regulator, is preparing for potential university insolvencies, having already advertised a contract worth up to £4 million for professional services to handle restructuring. This move follows financial reports showing that universities had overly optimistic projections for international student growth, expecting a 35% increase in international entrants between 2022 and 2026.
Amid 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 of that going to the UK. Foundation courses in the UK are priced between £10,000 and £15,000, with an average student needing an additional £8,000 annually for other expenses.
As UK universities look to diversify their student recruitment efforts, the hope is that the stability signaled by the new government will benefit future admission cycles after the turbulence of the past 18 months. However, institutions must work closely with embassies and other stakeholders to communicate these changes effectively to potential students.
