A report by the Financial Times of London has revealed a sharp 65% decline in payments by Nigerian students for the upcoming academic session in UK universities, which begins in September.
This drop is attributed to the current economic challenges in Nigeria.
Similarly, the report highlighted a 44% reduction in payments by Indian students compared to the previous year.
Nigeria and India are two of the top three countries contributing to the UK’s international student population.
Citing data from Enroly, a web platform used by a third of international students to manage their enrolment, the report noted an overall 35% decline in deposits by foreign students for UK university courses compared to August 2023.
Paul Kett, senior education and skills adviser at PwC UK, warned that some universities might need to take further steps to ensure their financial stability in light of the ongoing decline.
Despite signs of a slight recovery in student applications in recent months, the number of international applicants to UK universities remains significantly below previous levels. This downturn is causing financial strain for some institutions.
Education Secretary Bridget Phillipson, speaking last month, emphasized the Labour government’s commitment to welcoming international students. She criticized the prior Conservative government’s negative stance on migration, which she believes harmed efforts to attract foreign students.
The data underscored a substantial drop in deposits from Nigerian and Indian students—two of the largest international markets for UK universities—down 65% and 44%, respectively, compared to August last year.
Jeffrey Williams, Enroly’s Chief Executive, said the “early signs” of recovery reflected efforts by the new government to stabilise immigration policy.
“Concerns regarding the potential elimination of the postgraduate route work visa have been assuaged,” he said, adding that this had been helped by “continued political uncertainty” in other markets such as Australia and Canada.
Harry Anderson, Deputy Director of Universities UK International, the sector lobby group, said the international environment remained volatile for universities as they continued to look to diversify the range of countries from which they recruit students.
Labour has so far retained the Conservative’s ban on most graduate students bringing family members, which Anderson said would still present competitive challenges for UK institutions.
“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.
“Still, the hope is that stability signalled by the new government will benefit the next admissions cycle after the turbulence of the last 18 months. But the sector needs to be working hard with embassies to communicate this,” Anderson added.
The regulator, the Office for Students, has already started to prepare for a potential wave of university insolvencies, advertising for a contract of up to £4million for professional services companies to handle restructuring programmes.
It made the move after financial accounts revealed over-optimistic assumptions about the growth of overseas’ recruitment in the next few years.
In its annual report this May the OfS accused universities of “optimism bias” for using projections of 35 per cent growth in international entrants in 2022-26.
Meanwhile, a recent data from the Central Bank of Nigeria’s balance of payment compilation spanning the first six months of 2023, showed that Nigerians spent $896.09million on foreign education, with a large chunk going to the UK.
Foundation courses in the UK go for between £10,000 and £15,000 and an average student would need about £8,000 for other expenses yearly.
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