For Nigerian students studying abroad, the struggle to pay tuition fees in foreign currencies has been a major hurdle. But now, a groundbreaking policy allows them to pay UK and US tuition fees directly with naira cards, thanks to improved FX liquidity. This development is a game-changer for thousands of students and their families.
How Nigerian Students Can Pay UK and US Tuition with Naira Cards
The Central Bank of Nigeria (CBN) has enabled students to convert naira to foreign currency at official rates through the Form A portal. This initiative covers educational fees, medical bills, and training courses. Here’s how it works:
- Register on the CBN’s Trade System Portal (www.tradesystem.gov.ng)
- Select the Form A option for educational fees
- Submit required documents (admission letters, fee schedules)
- Banks convert naira to foreign currency at the official rate
Transactions are processed within four days, a significant improvement from previous delays of up to 120 days.
The Impact of Improved FX Liquidity on Education Payments
Improved FX liquidity has made this policy feasible. Key benefits include:
- Reduced reliance on parallel forex markets with exorbitant rates
- Faster processing times for tuition payments
- Lower transaction costs compared to fintech alternatives
GTBank confirmed the service covers both bachelor’s and postgraduate fees, while Lotus Bank noted that the process was previously limited by low FX availability.
Challenges Nigerian Students Faced Before This Policy
Before this development, Nigerian students faced numerous challenges:
- Banks suspended international naira card transactions (2022-2023)
- Students relied on costly fintech platforms like Flutterwave and Geegpay
- Parallel forex markets charged inflated rates
The CBN’s recent interventions, including naira flotation and enhanced FX management, have stabilized the market, making this policy possible.
What This Means for Nigeria’s Education Sector
Over 22,000 Nigerians migrated to the UK for education in 2024 alone. With easier payment options, this number is likely to grow. The policy:
- Reduces financial barriers to global education
- Aligns with Nigeria’s economic development goals
- Positions Nigeria as a hub for international education
A GTBank official stated, “The system is robust with better FX availability, ensuring seamless transactions.”
Frequently Asked Questions (FAQs)
1. How long does it take to process tuition payments through the Form A portal?
Transactions are processed within four days, compared to previous delays of up to 120 days.
2. Which banks support this service?
Major Nigerian banks like First Bank, GTBank, and Zenith Bank support the service.
3. What documents are required for the payment process?
Students need to submit admission letters and fee schedules, among other documents.
4. Is the Form A portal being discontinued?
The CBN has dismissed rumors of discontinuing the portal and reaffirmed support for legitimate forex requests.
5. How does this policy compare to using fintech platforms?
The official rates through the Form A portal are typically lower than those offered by fintech platforms.
