A report by the *Financial Times of London* has revealed that, due to the current economic challenges in Nigeria, payments made by Nigerian students for the upcoming academic session starting in September at UK universities have dropped by 65% compared to last year. The report also noted a 44% decrease in payments by Indian students compared to August 2023.
Nigeria and India are among the top contributors to the international student population in the UK. The report, citing data from Enroly, a platform used by one in three international students for enrollment management, highlighted a 35% overall decline in deposits for UK university courses by foreign students this month, compared to August 2023.
Paul Kett, senior education and skills advisor at PwC UK, warned that some institutions may need to take significant measures to maintain financial stability. Despite slight signs of recovery, the number of international students applying to UK universities remains significantly lower than in recent years, placing some institutions at financial risk.
The decline was slightly less severe in May, where the drop in deposits was 57% compared to the previous year. Education Secretary Bridget Phillipson emphasized that the new Labour government aims to welcome international students and criticized the anti-immigration rhetoric of the previous Conservative administration.
The data highlights the sharp decline in Nigerian and Indian student deposits, while smaller markets like Kenya and Nepal showed increased demand compared to last year.
Enroly’s Chief Executive, Jeffrey Williams, noted that the slight recovery is partly due to efforts by the new government to stabilize immigration policies, including easing concerns about potential changes to the postgraduate work visa route. He also mentioned that ongoing political uncertainties in other markets like Australia and Canada contributed to this recovery.
Harry Anderson, Deputy Director of Universities UK International, acknowledged the volatility in the international recruitment environment and stressed the need for UK universities to diversify their student sources. Anderson pointed out that Labour has maintained the Conservative ban on most graduate students bringing family members, which remains a competitive challenge for UK institutions.
He added that most competitor countries allow students to bring family members, and recent growth has primarily come from postgraduate courses, where students are often older and have families. Despite this, there is optimism that the new government’s stability will positively impact the next admissions cycle after a turbulent 18 months.
The Office for Students (OfS) is preparing for potential university insolvencies, advertising contracts worth up to £4 million for professional services companies to manage restructuring. This move follows financial reports indicating overly optimistic projections of international student growth in the coming years.
According to the Central Bank of Nigeria’s balance of payments data for the first half of 2023, Nigerians spent $896.09 million on foreign education, with a significant portion going to the UK. Foundation courses in the UK typically cost between £10,000 and £15,000, while students generally require an additional £8,000 annually for living expenses.