Due to the ongoing economic challenges in Nigeria, payments by Nigerian students for the upcoming academic session at UK universities have plunged by 65% compared to last year, according to a report by the Financial Times of London.
The report also revealed a 44% drop in payments from Indian students, further highlighting the financial strain affecting international education.
Both Nigeria and India are among the top contributors to the League of International Students in the United Kingdom. The Financial Times cited data from Enroly, a platform used by one-third of international students for managing enrolments, which noted a 35% overall drop in deposits for UK university courses by foreign students this August, compared to the same period in 2023.
“Some will likely need to take further significant action to secure their financial sustainability,” said Paul Kett, Senior Education and Skills Adviser at PwC UK.
Despite a slight recovery in applications this month, UK universities are still grappling with numbers far below recent levels, leaving some institutions facing potential financial crises. This slight improvement follows a 57% drop reported in May compared to a year earlier.
Education Secretary Bridget Phillipson emphasized the Labour government’s commitment to welcoming international students, criticizing the previous Conservative administration’s negative rhetoric on migration. “The data showed a significant decline in students from Nigeria and India, two of the three largest international markets for UK universities,” Phillipson added.
Deposits from Nigerian students fell by 65%, while those from Indian students decreased by 44% compared to August 2023. In contrast, smaller markets such as Kenya and Nepal showed increased demand against the previous year.
Jeffrey Williams, Chief Executive of Enroly, pointed to “early signs” of recovery, attributing it to efforts by the new government to stabilize immigration policy. “Concerns regarding the potential elimination of the postgraduate route work visa have been assuaged,” he said, adding that “continued political uncertainty” in other markets like Australia and Canada also played a role.
Harry Anderson, Deputy Director of Universities UK International, acknowledged the challenges posed by the international environment but expressed hope for future stability. “Most of our competitor destinations do allow students to bring their family members, and most of the growth in recent years has been in postgraduate taught courses where students typically tend to be older and have family members,” Anderson noted.
The Office for Students (OfS) is preparing for a possible wave of university insolvencies, advertising a contract worth up to £4 million for professional services companies to handle restructuring programs. This move follows financial accounts revealing overly optimistic assumptions about the growth of overseas recruitment in the coming years.
In its annual report this May, the OfS accused universities of an “optimism bias” for using projections of 35% growth in international entrants between 2022 and 2026.
Meanwhile, data from the Central Bank of Nigeria’s balance of payments for the first half of 2023 showed that Nigerians spent $896.09 million on foreign education, with a significant portion directed to the UK. Foundation courses in the UK range from £10,000 to £15,000, and an average student needs about £8,000 annually for other expenses.
