According to a report by the Financial Times of London, payments made by Nigerian students to universities in the United Kingdom for the new academic session beginning in September have decreased by 65% from the previous year due to the country’s current economic hardship.
Payments by Indian students have plummeted by 44% since August of last year. The two countries are among the top three contributors to the league of international students in the UK.
According to the report, data from Enroly, an online platform used by one in every three international students for enrolment management, shows a 35% decline in deposits for places on UK university courses by foreign students this month compared to August 2023.
As a result of the trend, economists predict that international students will return in lower numbers to UK universities, and that the higher education industry would face financial challenges as it becomes increasingly reliant on higher-paying abroad students.
“This is still going to be a challenging and critical recruitment round for many,” said Paul Kett, senior education and skills adviser at PwC UK.”The impact on individual institutions will be highly diverse, based on their relative attractiveness and primary target markets.
“Its conceivable that some may need to take additional considerable action to ensure their financial sustainability,” he said.
Despite signs of a minor improvement this month, the number of overseas students applying to UK universities has remained significantly lower than in previous years, leaving several schools in financial distress.
This represents a little improvement from May, when the drop was 57% compared to a year earlier. Bridget Phillipson, Education Secretary, stated last month that the new Labour government wishes to welcome international students. She condemned the previous Conservative administration’s hostile tone, which successive Tory ministers used as they attempted to reduce total migration figures.
The data revealed a considerable drop in students from Nigeria and India, two of the three largest international markets for UK colleges. Deposits from Nigerian students dropped by 65 percent, while deposits from Indian students plummeted by 44 percent, compared to August 2023.
Smaller markets, such as Kenya and Nepal, showed more demand than a year earlier. Enroly’s Chief Executive, Jeffrey Williams, stated that the “early signs” of recovery reflected the new government’s efforts to normalise immigration policies.Concerns about the potential elimination of the postgraduate route work visa have been alleviated,” he said, citing “continued political uncertainty” in other markets like Australia and Canada.
Harry Anderson, Deputy Director of institutions UK International, the sector lobby group, stated that the international environment remained uncertain for institutions as they sought to diversify the number of countries from which they recruited students.
Labour has so far maintained the Conservatives’ ban on most graduate students bringing family members, which Anderson said will continue to pose competitive issues for UK universities.
“Most of our competitor destinations allow students to bring family members, and the most of the growth in recent years has been in postgraduate taught courses, where students are often older and have families. “Still, the hope is that the stability promised by the new government will improve the next admissions cycle following the instability of the previous 18 months. However, the industry must work together with embassies to effectively express this,” Anderson stressed.
The Office for Students, the regulator, has already began to prepare for a potential wave of university insolvencies by advertising a contract worth up to £4 million for professional services firms to conduct restructuring initiatives.
It made the decision after financial reports revealed overly rosy projections regarding the expansion of international recruitment in the coming years. In its annual report this May, the OfS accused universities of “optimism bias” for using forecasts of a 35% increase in overseas
Meanwhile, recent figures from the Central Bank of Nigeria’s Balance of Payments compilation for the first six months of 2023 show that Nigerians spent $896.09 million on international education, with a substantial portion travelling to the United Kingdom.
Foundation courses in the UK cost between £10,000 and £15,000, and the average student will need around £8,000 for miscellaneous fees each year.
Bottom Line
The UK higher education sector is heavily reliant on international students, who pay significantly higher tuition fees compared to domestic students. A 65% drop in deposits from Nigerian students, combined with a 44% decline from Indian students, represents a substantial financial hit. Many universities, especially those that are less prestigious and more reliant on international tuition, could face financial distress. This could lead to budget cuts, layoffs, and even potential closures if the trend continues.
The decline in Nigerian and Indian students could signal a broader shift in international education patterns. Countries like Canada, Australia, and the United States, which have traditionally been strong competitors in attracting international students, may also see fluctuations depending on their immigration policies, economic conditions, and the global geopolitical climate.
The UK’s recent political instability and changes in immigration policies, such as restrictions on bringing family members, could further exacerbate these challenges.
