Investment in education is one of the bedrock of society and helps determine the level of development recorded in an economy. The value of education in an economy cannot be overemphasized, as it helps shape both individuals and the broader society, and forms a huge source of economic value.
For Nigeria, data shows that whilst Nigerians have remitted over $28 billion to foreign academic institutions, there does not appear to be significant reciprocation in form of inflows from foreign sources towards Nigeria’s education sector.
A review of the Central Bank of Nigeria’s (CBN) data suggests Nigeria’s educational sector has suffered massive capital flight in the last 10 years.
Specifically, using the CBN’s balance of payment statistics, Nigerians have spent a hefty sum of $28.65 billion on foreign education in the past 10 years (2010 to 2020).
The exchange rate has become the focal point for the economy considering the direct impact it has on the cost of goods and services. It is also the major reason why there are multiple exchange rates and a widening disparity between the parallel market rate and the official rates.
For most analysts, this is also the basis for some of the harshest regulatory onslaughts currently being witnessed by Startups particularly in the FinTech space in the country. Angel News believe that highlighting our forex demand drivers can perhaps help better understand how we can collectively proffer solutions.
A random survey of Nigerian youths revealed various reasons why the youthful population pursue academic qualifications outside the shores of the country.
In an interview with Miss Ejiro Ovuakporaye, a marketer at a notable Fintech company in Nigeria, she expressed her great desire to further her studies outside the country. According to her, foreign certification is more appreciated in Nigeria compared to locally acquired degrees and this has propelled many Nigerians to embark on foreign academic pursuits. Also, she commented on the ease of lectures, modern curriculum and stability in the academic calendar.
“In Nigeria, we spend about 6 years for a 4-year course, due to strike actions,” she lamented.
In the same vein, Miss Morenikeji Alabi, an investment trader said she would prefer to study in any other country apart from Nigeria, due to inadequate structure and lack of practical research facilities bedevilling the educational sector in Nigeria. Miss Morenike, who is a Statistician by discipline feels the Nigerian educational sector lacks the level of practicability and competitiveness to attract foreign students into the country.
It is apposite to say that Nigeria’s persistent level of underinvestment compared to global standards does not bode well for any effort towards improving the nation’s human capital index, nor will it address the seemingly insatiable demands for foreign education.
The Nigerian education sector requires adequate funding as well as the willingness to build competitive value amongst its peers.
It is worth noting that most of the universities overseas have a number of their programmes done online, which caters for students not domiciled in the country. The same cannot be said about most universities in Nigeria.
