On Sunday, data acquired from the Central Bank of Nigeria’s website indicated that Nigeria’s educational sector saw huge capital flight under the presidency of Major General Muhammadu Buhari (retd).
In particular, based on the CBN’s balance of payment figures, Nigerians have spent a staggering $3.5bn on international schooling over the previous seven years (June 2015 to August 2022).
Industrial strikes by unions including the Academic Staff Union of Universities and the Academic Staff Union of Polytechnics have disrupted education in Nigeria, particularly in the tertiary education sector.
Recent months of academic activity at Nigerian universities, polytechnics, and institutes of education have been suspended.
According to statistics collected by the Central Bank of Nigeria (CBN) on the amount spent for educational services under the sectoral utilisation for transactions qualifying for foreign exchange, the apex bank issued $375.99 million between June 2015 and December 2015.
Additional data analysis found that a total of $269,1 million was distributed in 2016.
In 2017, the central bank stated that a total of $514.16 was issued for overseas education, representing a significant increase.
A total of $546.78 was issued in 2018.
In 2019, the bank released $197.52 million, representing a significant decline.
Also emphasized was the availability of $270.42 million in 2020 in response to the coronavirus pandemic.
In 2021, the bank recorded a total of $720,00.5 million released for the same reason, representing a significant increase.
Only statistics from January to August of 2022 are now accessible, revealing that a total of $609.5 million has been distributed thus far.
Under Buhari, Nigerians sent more than $3.5 billion to international academic institutions without considerable reciprocity in the form of inflows from outside sources to the local education sector, according to statistics from the central bank.
According to analysts, the enormous net dollar withdrawals have the double negative consequence of underinvestment in local education and exerting pressure on the naira exchange rate.
The strong demand for dollars to pay overseas educational institutions has a negative impact on Nigeria’s foreign reserves and has a significant impact on the currency rate.