The study underscores the significant financial burden placed on Nigerian families striving to provide quality education for their children, especially amidst the nation’s prevailing economic headwinds. The escalating costs are demonstrably making it increasingly challenging for parents and sponsors to keep children in school at all levels.
The breakdown of expenses reveals the considerable outlay required at each stage of education. Primary school fees range from ₦613,000 ($380) to ₦1.9 million ($1,178) annually for private institutions, starkly contrasting with the relatively lower cost of public primary education, which stands between ₦45,000 and ₦53,000 per year.
As children progress to secondary school, spanning six years, the financial divergence between public and private education persists. Public secondary school fees range from ₦50,000 to ₦61,000 annually, while private secondary education demands a significantly higher investment, ranging from ₦750,000 ($465) to ₦2.8 million ($1,736) per year. Notably, the Cowrywise report identifies secondary education as the most expensive stage for parents choosing the private route.
The tertiary level presents its own set of financial challenges. While public university education remains relatively affordable, costing between ₦58,000 ($36) and ₦167,000 ($104) annually, private university fees soar to between ₦900,000 ($465) and ₦1.2 million ($744) per year, making it the most expensive stage for those seeking private tertiary education.
Amidst these escalating costs, the Cowrywise study offers a glimmer of hope, highlighting the potential of strategic savings plans. The report suggests that parents who invest ₦1,300,000 ($806) annually in a savings plan with a 10% annual interest rate could potentially save up to 33% of these cumulative education fees, depending on the combination of public and private schooling their child pursues. This underscores the importance of early financial planning in mitigating the impact of rising education expenses.
The study employed a combination of primary and secondary data, focusing on major educational costs while excluding transportation and extracurricular activities. Its findings emphasize investment as a prudent strategy for parents aiming to secure their children's educational future without succumbing to overwhelming financial strain.
The report poignantly notes that providing children with quality education is a long-term commitment with significant benefits. However, in Nigeria, where a significant 63% of the population grapples with multidimensional poverty, the increasing unaffordability of education at all levels is contributing to a concerning surge in school dropouts.
“Education is an integral part of a child’s journey. It’s an ongoing experience that helps shape who they become, how they think, and the amazing opportunities ahead. That’s why every child must have access to education. But that brings up an important question: What does quality education cost?” the study highlights, emphasizing the fundamental importance of addressing this growing financial barrier.
Even at the primary level, despite the government’s Universal Basic Education (UBE) program aimed at providing free education, the prevalence of hidden fees associated with registration, uniforms, and textbooks often makes schooling an expensive undertaking for many families. Furthermore, the cost of enrolling children in secondary school is outpacing the income growth of a significant portion of the population. These factors are contributing to Nigeria’s alarming figure of 20 million out-of-school children.
The tertiary education sector is also grappling with affordability issues. Recent hikes in school fees across government-owned public universities have led to a notable increase in dropout rates, with approximately 18% of tertiary students reportedly leaving school due to financial constraints. The study cites the University of Lagos as a prime example, where fees surged from a range of ₦26,000 ($16) – ₦76,000 ($47) to between ₦120,750 ($75) and ₦240,250 ($149) in 2023. Similar significant fee increases were experienced by other institutions such as UNIMAID, UNIABUJA, and UNIBEN.
While the Nigerian government launched the Nigerian Education Loan Fund (NELFUND) in 2024, claiming to have disbursed over ₦22 billion ($14 million) to over 200,000 students, concerns persist regarding the accessibility and overall effectiveness of these loans in truly addressing the widespread issue of education affordability. Many students continue to drop out or resort to crowdfunding on social media platforms like X and Facebook to finance their education.
The Cowrywise report ultimately underscores the stark reality that at all levels of education, the cost of enrolling a child in private schools remains largely prohibitive for low- and mid-income parents across Nigeria, highlighting the urgent need for sustainable solutions to ensure equitable access to quality education for all Nigerian children.