The financial stability of universities heavily reliant on Nigerian students is at risk due to the ongoing currency crisis in Nigeria.

Senior education sources express concerns about institutions with a significant proportion of Nigerian students, as the economic crisis has caused a surge in inflation and a devaluation of the naira against the dollar.

This situation raises fears that many Nigerian students may no longer be able to afford tuition fees in British universities, particularly affecting 20 institutions where they comprise 10% of postgraduate students.

Recent data from the Higher Education Statistics Agency (Hesa) indicates that UK universities have become increasingly dependent on Nigerian students, who now form the third largest group of international students after India and China.

In the previous year, a total of 72,355 Nigerian students were enrolled in UK higher education institutions, representing a substantial 66% increase.

However, it is anticipated that this figure will experience a significant decline in the current year due to the combined impact of the naira’s collapse and the implementation of visa restrictions for student dependents by the previous Conservative government.

According to an analysis of data from the Higher Education Statistics Agency (Hesa) conducted by the Telegraph, Nigerian students comprised over 10% of postgraduate students at 20 British universities during the academic year 2021/22.

Robert Gordon University in Aberdeen had the highest proportion of Nigerian postgraduate students, with 29% of their postgraduate student body originating from Nigeria.

The University of Bradford followed closely with 27%, while Teesside, Hull, and Sunderland all had over 20% of their postgraduate students from Nigeria.

Traditionally, overseas students have shown a strong preference for pursuing Masters and other postgraduate degrees due to the previous allowance for accompanying family members.

Data obtained from the Migration Observatory revealed that Nigerian students held the highest proportion of dependents in the United Kingdom during 2022, with an average of one family member per student.

In an effort to curb overall migration, the preceding Conservative government implemented a ban on dependent visas for the majority of postgraduate students in January. Former ministers expressed concerns that these visas were being exploited as a “backdoor” for employment opportunities in the UK.

The potential loss of a significant”number of Nigerian students has raised apprehensions regarding widespread financial challenges within the university sector.

In recent years, the sector has largely relied on international student fees to sustain itself, given that domestic tuition fees remain fixed at £9,250.

According to Hesa, foreign student fees accounted for approximately a quarter of UK university income last year, a substantial increase from the five percent recorded in the mid-1990s.

As per the Home Office statistics released on Thursday, there has been a significant decline in student applications between January and July of this year, with an overall decrease of 16% compared to the same period in 2023.

Additionally, there was a substantial drop in the number of students seeking to bring family members to the UK, with a notable 81% reduction in applications from student dependents during the same timeframe.

September recruitment is a crucial juncture

A prominent figure in the education sector shared with The Telegraph that the upcoming recruitment cycle in September could be a pivotal juncture for universities that heavily depend on Nigerian students.

Robert McNeil, affiliated with the Migration Observatory, suggested that the recent decline in international student visas may be partly attributed to the currency crisis in Nigeria.

“Recently there has been a big focus on recruitment of students from Nigeria, along with other countries like India,” he told The Telegraph.

“A situation where Nigeria’s currency is potentially devalued to where it was might be a contributing factor in declining numbers.

“There are trade-offs associated with any policy decision about how you control migration, but there are also external factors like currency crises that affect decision making [and the] flows of migration.”

Recently, Nigerian students enrolled in British universities faced significant challenges in continuing their studies due to financial difficulties.

Specifically, students at Teesside University were blocked from their studies and reported to the Home Office after the devaluation of the naira adversely affected their financial resources.

The university cited the students’ failure to pay tuition fees as a breach of visa sponsorship regulations, leaving them with no alternative.

Meanwhile, the government is actively engaged in crisis discussions regarding the state of the university sector. It is estimated that approximately 40% of universities in England are projected to incur budget deficits during the current year.

Recent reports indicate that some prominent institutions are contemplating potential mergers with smaller, struggling universities as a means of addressing these financial challenges.

Many students in financial difficulty

Vivienne Stern, the Chief Executive of Universities UK, stated, “Many students from Nigeria have been facing financial difficulties following the currency crisis which began last year. In these very difficult circumstances for students, universities have sought to work with students to understand their circumstances and provide what assistance they can.

“This may include flexibility in terms of fee payment schedules, offering to defer enrolments or to refund deposits to students where prospective students were concerned that their studies were no longer affordable, and offering support and advice for those that were already in the UK.

“However, visa and immigration rules do mean that, unfortunately, universities may need to withdraw sponsorship where a student is unable to complete their studies – though this is always a last resort.”

A representative of the University of Sunderland stated, “As evidenced in our most recent annual report, the university has maintained a secure and sustainable financial position over the last six years and we are working to continue this.”

A representative of Teesside University stated, “Teesside University is a global institution with a thriving network of international partners, and recruits from a wide variety of countries. We are extremely proud of our diverse campus and vibrant student community and consistently rank as number one for overall student satisfaction in the International Student Barometer.

“Whilst there is no doubt that changes made to immigration policy by the previous government have had an impact on the appeal of UK higher education in the global market, Teesside continues to attract applications from talented students from across the world and remains in a robust financial position.

“We look forward to welcoming our new international and home students to Teesside University this academic year.”