Universities in the United Kingdom have experienced a significant 65% drop in deposits from Nigerian students for the upcoming academic session starting in September 2024. This decline, compared to last year, is largely due to the economic challenges currently facing Nigeria, according to a report by the Financial Times of London.
The report also highlighted a similar trend among students from India, with deposits dropping by 44% compared to August 2023. Nigeria and India are among the top three contributors to the international student population in the UK, making these declines particularly concerning for the higher education sector.
The data, sourced from Enroly—a web platform used by one in three international students to manage their enrollment—shows an overall 35% drop in deposits from foreign students across UK universities this month, compared to August 2023. This decrease is expected to lead to fewer international students enrolling in UK universities this year, which could pose financial challenges for institutions that have become heavily reliant on the higher tuition fees paid by overseas students.
Paul Kett, a senior education and skills adviser at PwC UK, noted that the impact of this decline will vary across institutions. “This is still going to be a challenging and critical recruitment round for many,” he said. He added that some universities might need to take significant measures to ensure their financial sustainability, depending on their attractiveness to students and their focus on specific international markets.
While there has been a slight recovery in the number of international student applications to UK universities, the numbers remain well below recent levels. In May 2024, the drop in deposits was recorded at 57% compared to the previous year, indicating that the situation has seen only a modest improvement since then.
The UK’s new Labour government has expressed its commitment to welcoming international students, with Education Secretary Bridget Phillipson criticizing the previous Conservative administration’s negative stance on migration. However, the data still shows a significant decline in interest from key markets like Nigeria and India.
Despite the overall decline, smaller markets such as Kenya and Nepal have shown increased demand for UK education compared to the previous year. Jeffrey Williams, Chief Executive of Enroly, mentioned that the “early signs” of recovery are partly due to the new government’s efforts to stabilize immigration policies. He noted that concerns about the potential elimination of the postgraduate work visa have been eased, which may help boost future recruitment efforts.
Harry Anderson, Deputy Director of Universities UK International, pointed out that the international environment remains volatile for universities. He emphasized the need for institutions to diversify their recruitment efforts across a broader range of countries. Anderson also mentioned that the ongoing ban on most graduate students bringing family members, which was retained by Labour, poses a competitive challenge for UK universities, as other countries allow students to bring their families.
The Office for Students, the UK’s higher education regulator, has started preparing for potential financial crises in universities. The regulator is seeking professional services companies to manage restructuring programs, anticipating that some institutions may face insolvency due to over-optimistic projections about the growth of international student recruitment in the coming years.
Recent data from the Central Bank of Nigeria revealed that Nigerians spent $896.09 million on foreign education in the first half of 2023, with a significant portion going to the UK. Foundation courses in the UK typically cost between £10,000 and £15,000, with additional yearly expenses of around £8,000 per student, making UK education a significant financial commitment for Nigerian families.
