The Central Bank of Nigeria (CBN) has revealed that Nigerian students in nine months(January to September 2022) spent a whopping N635.49 billion ($1.38bn) on foreign education.

LEGIT.NG reports that this includes tuition fees, accommodation, living expenses, and other related costs of studying abroad.

Speaking, Godwin Emefiele, the Governor of the Central Bank noted that Nigeria’s growing demand for foreign education is straining the country’s external reserves.Information Guide Nigeria

He stated that it was affecting naira exchange rate value adding that Foreign education is classified under personal travel allowances (PTA), recorded as debit transactions in the country’s balance of payments.

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Recall that in Q3 of 2022, the Central Bank of Nigeria (CBN) reported a current account deficit of $603.14 million. In the nine months, the deficit amounted to $1 billion due to more outflows than inflows.NYSC portal

A negative balance in the BoP means that the country sent more foreign exchange to other countries during the review period than it received.

As reported by Punch, the outflow of funds from Nigeria to finance foreign education and other expenses has contributed to the current account deficit.

CBN noted that there is a need to prioritize investment in the Nigerian education sector to prevent capital flight and strengthen the country’s external reserves.JAMB Result

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