A significant 65% drop in deposits by Nigerian students for the upcoming academic session at UK universities has been reported, marking a sharp decline compared to last year.
This reduction, attributed to the ongoing economic challenges in Nigeria, is expected to impact the higher education sector in the UK, which has become increasingly reliant on international students.
According to the Financial Times, payments from Indian students also fell by 44%, with both countries being among the top contributors to the international student population in the UK. Overall, deposits for UK university courses from international students decreased by 35% this month compared to August 2023, based on data from Enroly, a platform used by one in three international students for enrollment management.
The decline in international student numbers has raised concerns about the financial stability of UK universities.
Paul Kett, a senior education and skills adviser at PwC UK, highlighted the challenges ahead, stating, “This is still going to be a challenging and critical recruitment round for many. The impact on individual institutions will be highly variable depending on their relative attractiveness and which markets they are predominantly focused on.”
Kett also warned that some universities might need to take “further significant action to secure their financial sustainability.”
Despite a slight recovery in international student applications this month, the numbers remain well below recent levels. The report noted a slight improvement from May when the drop in applications was 57% compared to the previous year.
Education Secretary Bridget Phillipson emphasized the Labour government’s commitment to welcoming international students. She criticized the previous Conservative administration’s efforts to reduce overall migration. However, the data continues to show a steep decline in students from key markets like Nigeria and India.
While smaller markets such as Kenya and Nepal showed increased demand, the overall picture remains concerning for UK universities. Jeffrey Williams, CEO of Enroly, acknowledged the “early signs” of recovery, attributing them to efforts by the new government to stabilize immigration policies. He mentioned that concerns about the potential elimination of the postgraduate route work visa have been eased. This has helped maintain some level of interest in UK universities.
Harry Anderson, Deputy Director of Universities UK International, pointed out that the international environment remains volatile, and UK universities must continue to diversify their recruitment efforts. He noted that the Conservative’s ban on most graduate students bringing family members remains in place, which could pose competitive challenges.
Anderson explained, “Most of our competitor destinations do allow students to bring their family members, and most of the growth in recent years has been in postgraduate taught courses where students typically tend to be older and have family members.”
Anderson added that despite the challenges, there is hope that the stability signaled by the new government could benefit the next admissions cycle after the turbulent past 18 months. However, he emphasized the need for universities to work closely with embassies to communicate these changes effectively.
In light of the financial pressures, the Office for Students, the UK’s higher education regulator, has begun preparing for potential university insolvencies. It has advertised a contract worth up to £4 million for professional services companies to manage restructuring programs. This move follows concerns about overly optimistic projections of international student growth, which were criticized in the regulator’s annual report earlier this year.
However, data from the Central Bank of Nigeria revealed that Nigerians spent $896.09 million on foreign education in the first half of 2023, with a significant portion going to the UK. Foundation courses in the UK typically cost between £10,000 and £15,000, with additional yearly expenses of around £8,000 for the average student.