Over the past decade, private education in Nigeria has grown from being a choice for the privileged few into a multi-billion-naira industry with significant economic implications. From nursery schools in Lagos charging in dollars to elite boarding institutions in Abuja and Port Harcourt charging millions of Naira, private schools are not only reshaping the educational landscape but are also quietly contributing to foreign exchange earnings in ways that were once unimaginable. The rising trend of Nigerian private schools charging tuition fees in foreign currency, partnering with international curricula, and even attracting non-Nigerian students is opening up a new chapter in the conversation about how education influences the economy. But are private schools truly becoming a new source of foreign exchange for Nigeria, or is this an exaggerated narrative?
The rise of private school fees in foreign currency
One of the most striking developments in Nigeria’s private education sector is the increasing number of schools that demand tuition fees in dollars, pounds, or euros. Particularly in urban hubs like Lagos, Abuja, and Port Harcourt, some top-tier private schools now set their fees in foreign currency to hedge against the volatile naira. For parents earning in foreign currency or living abroad but sending their children to school in Nigeria, this system seems convenient. However, this also means that such schools are retaining foreign exchange within the country, thus inadvertently contributing to the local economy.
Attracting International Students and Expatriate Families
Private schools in Nigeria are increasingly designed to appeal not just to Nigerians but also to expatriates and foreign residents. With the introduction of British, American, and Canadian curricula, these schools create an academic environment that is globally competitive. This attracts families who would otherwise have opted for schools abroad, allowing Nigeria to retain education-related foreign spending domestically. Some schools also host exchange programmes and accept international students, turning education into a subtle but significant earner of foreign exchange.
Partnerships with foreign institutions
A growing number of private schools in Nigeria have established partnerships with schools and universities abroad. These partnerships often involve curriculum affiliations, international examinations (such as Cambridge IGCSE or SAT), and teacher training programmes conducted by foreign institutions. Fees for such programmes are often paid in foreign currency, which flows into Nigeria through these schools, increasing their role as an FX player in the economy.
The cost for parents: Who really pays?
While private schools may appear to be contributing to foreign exchange inflows, the burden often falls squarely on parents. Many families are forced to source foreign currency on the parallel market at high exchange rates to pay tuition fees pegged in dollars or pounds. This creates an ironic situation where private schools seem to “earn” foreign exchange, but the actual flow is parents converting naira to foreign currency rather than genuine inflows from abroad.
Are they really foreign exchange earners or just consumers?
This question lies at the heart of the debate. For a school to truly be a foreign exchange earner, it would need to attract students from outside Nigeria or bring in significant revenue from foreign partnerships and sponsorships. In many cases, what we are seeing is a recycling of Nigerian wealth into foreign-currency-based systems. However, elite schools that enrol children of diplomats, international business executives, or Nigerians in the diaspora do play a modest role in conserving FX outflows by offering an alternative to schooling abroad.
Impact on Nigeria’s educational dystem
The pegging of fees to foreign currency has deepened the class divide in Nigerian education. It places elite schools far out of the reach of average Nigerian families and risks creating a two-tiered system: one for the ultra-wealthy with access to globalised education and another for the rest. This dynamic raises questions about equity, accessibility, and the very definition of education as a public good rather than a commercial commodity.
Policy and Regulation: What role can Government play?
Currently, there are minimal regulations governing how private schools set their fees, particularly when it involves foreign currency. The Central Bank of Nigeria (CBN) has, at various points, warned against unregulated dollarisation of the economy, but enforcement remains weak in the education sector. Stronger policies could ensure that while private schools thrive, they do so without deepening economic inequalities or creating artificial demand for foreign currency.
Opportunities for the future
If strategically managed, private schools could indeed become formal players in Nigeria’s foreign exchange ecosystem. Schools that actively recruit international students, develop exportable educational content (e.g., online courses or exchange programmes), or partner with global education brands can help generate FX rather than drain it. This requires a shift from the current consumption model to one that views private education as part of Nigeria’s export economy.
Conclusion
Private schools in Nigeria are undeniably evolving into more than just centres of learning; they are becoming economic players with implications far beyond the classroom. Yet, whether they are true foreign exchange earners remains a nuanced debate. For now, their biggest role lies in reducing education-related capital flight by offering global-standard schooling locally. However, without a deliberate strategy to attract genuine foreign inflows, they risk being seen as conduits for currency consumption rather than as contributors to Nigeria’s economic resilience.
