September 01, (THEWILL) – Foreign education cost Nigeria $28.65bn from 2010 to 2020, with Personal Transport Allowance totalling $58.7bn, a report by the Office of the Deputy Speaker, House of Representatives, quoting the Central Bank of Nigeria, has disclosed.
In a statement, the office noted that redirecting a portion of the funds to ventures within the country could have significantly strengthened the naira, adding that promoting transnational education in the country “is pivotal for boosting the economy” and alleviating forex pressure.
The statement also noted that offering scholarships and fostering partnerships for in-country foreign education delivery could help Nigeria attract more transnational education providers, solidifying its position as Africa’s largest market for international education.
It also noted that collaborative efforts would play a vital role in improving the transnational education landscape in Nigeria.
“There is an urgent need for a legislative framework to create policies that will enable the Federal Government to develop a sustainable transnational education sector.
“These policies would facilitate the transformation of six universities into transnational tertiary educational institutions, boosting the country’s Gross Domestic Product through education exports, and establishing a roadmap for long-term market growth,” the report added.
According to the statement, safeguarding Nigerian students abroad is paramount, with a task force focusing on qualification recognition and insurance schemes.
It emphasised that Education, as an exportable service, holds immense potential for Nigeria. So, embracing transnational education enables Nigeria to expand international education access and strengthen collaborations with global partners. This strategic move goes beyond academics, fostering cultural exchange, knowledge sharing and skills development.”
The benefits of transnational education, it added, are far-reaching, enhancing the educational landscape by introducing co-funded scholarship programmes, student support services, and establishment of foreign universities in Nigeria.
The statement recognised that as Nigeria experiences a surge in higher education interest, partnerships with key players such as China, UK, Canada, US and Australia are crucial to meeting the growing demand for quality education.
“In the post-pandemic world, focusing on education as a tradable service not only drives economic growth but also fosters cross-border relationships, emphasising Nigeria’s commitment to global partnerships and excellence in research and teaching.
“The present geopolitical, economic and policy contexts in Nigeria have posed challenges for international education activities, with a focus on other sectors in the past.”
The massive brain drain currently ravaging the Nigerian corporate world is leaving a huge skill gap in most organizations, as it seems the best hands are the ones jumping on the “Japa” trend, making an imperative case for firms to train and retrain their staff to fill the space. This has also meant more competition in terms of hiring as firms now develop strategies to outwit themselves in getting the remaining best hands in the industry.
Some firms have had to adopt a more flexible work environment, in order to allow employees that prefer to work part-time, or from remote locations to fit into their work schedule.
Foreign education spending requires the availability of foreign exchange, something which the Nigerian economy is in shortage of at the moment. The increased demand for the dollar to pay for foreign services, speculative needs, and importation amongst others have caused a significant depreciation in the local currency against the US dollar.
The Naira traded at N1,598.56 to the dollar on Friday, August 30, 2024 – on the Nigerian Foreign Exchange Market (NAFEM) according to data from the FMDQ website – pointing to the huge depreciation of the local currency which traded at N471.67 to the dollar on June 13, 2023 before the devaluation of the Naira on June 14, 2023.
The implication of increased foreign exchange spending is that it piles more pressure on the exchange rate and as a result depreciates the local currency when the supply of FX is inadequate.
At a time commercial banks have mandated travelers in need of dollars for Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) to get travel debit cards as they began the disbursements of dollars through cards. A move aimed at curbing the abuse by travelers who get forex but fail to use it for trip-related purposes. This is following the continuous scarcity of FX in some banks to meet travelers’ demands.
The Central Bank of Nigeria has introduced many policies to regulate the volatile foreign exchange market which has not witnessed relative stability, but without a strong Naira.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
