Nigeria’s foreign exchange spending on foreign education and medical tourism fell sharply by 66% year-on-year in the first quarter of 2025.
Data from the Central Bank of Nigeria’s (CBN) Quarterly Statistical Bulletin for Q1 2025 showed that total FX utilisation for education and health services dropped to $13.76 million in Q1 2025, compared to $40.49 million in Q1 2024.
The decline shows how Nigeria’s current FX policies have reshaped spending behaviour among citizens who rely on foreign services for education and healthcare.
Foreign exchange demand for educational services plunged by 64.1%, from $38.18 million in Q1 2024 to $13.7 million in Q1 2025. This category covers tuition, examination fees, and other educational remittances to institutions abroad.
Monthly data shows a steady decline through early 2025. Nigerians spent $4.88 million in January, $4.69 million in February, and $4.13 million in March, a combined total of $13.7 million. This represents a 64% year-on-year fall from Q1 2024, when educational forex spending hit $27.06 million in January, $9.3 million in February, and $1.82 million in March.
The data suggests a sharp contraction in tuition-related transactions compared to the start of 2024. Despite a marginal rebound from Q4 2024’s total of $7.67 million, the current figure reflects less demand from Nigerians seeking to fund studies abroad.
The amount Nigerians spent on foreign medical treatment in Q1 2025 was negligible. CBN data shows only $0.06 million was allocated to the “Health Related and Social Services” category, down by 97.4% from $2.31 million in Q1 2024.
A monthly breakdown reveals $0.06 million in January, with no recorded spending in February or March 2025. This contrasts sharply with January 2024’s $2.3 million and the modest amounts recorded in previous months.
The steep drop likely highlights how rising exchange rates have discouraged medical tourism as Nigerians who once sought critical treatment abroad now face higher costs, forcing many to turn to local facilities.
Earlier in February 2024, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said that the amount spent on foreign education and medical tourism contributes to Nigeria’s foreign exchange challenges.
In a detailed presentation to the House of Representatives, Cardoso highlighted that an alarming $40 billion has been expended on foreign education and healthcare, a factor contributing to the devaluation of the Naira.
The CBN governor decried the amount of pressure in the foreign exchange market amidst forex scarcity, which adds to the depletion of naira value.
Naijaonpoint earlier reported that Nigerians spent $38.17 million on foreign education expenses between January and March 2024. The amount spent has crashed by 83% from $218.87 million recorded in the same period of last year.