Nigerians Spend $1.73bn on Foreign Education and Healthcare in 6 Months Amid Economic Hardship

Despite inflation and a weak naira, Nigerians spent $1.73 billion on foreign education and healthcare in the first half of 2025, raising concerns over confidence in local institutions.

Nigerians Spend $1.73bn on Foreign Education and Healthcare in Six Months

Despite soaring inflation, rising unemployment, and a historic depreciation of the naira, Nigerians spent a staggering $1.73 billion on foreign education and healthcare services in the first half of 2025. The figure represents a 19 percent increase compared to the same period in 2024 and marks the highest level of spending on these services in four years.

This trend, revealed through Vanguard’s analysis of data from the Central Bank of Nigeria (CBN) Quarterly Statistical Bulletin, underscores a growing reliance on foreign institutions for critical needs such as schooling and medical treatment—even as the cost of living crisis continues to deepen at home.

The data shows a clear upward trajectory. After a sharp COVID-19-induced collapse in spending—from $4.347 billion in H1 2019 to $1.14 billion in H1 2023, a drop of about 74 percent—outflows for foreign education and healthcare began to recover. By H1 2024, the figure had climbed by 21.6 percent to $1.457 billion. That recovery accelerated in H1 2025, with spending rising another 19 percent to reach $1.73 billion.

In just two years, between H1 2024 and H1 2025, Nigerians increased their spending on these services by nearly $578 million, representing a 50 percent growth. This surge comes at a time when the naira has lost over 99 percent of its value in the same period, with the exchange rate worsening from ₦769 per dollar in H1 2023 to about ₦1,553 per dollar by the end of H1 2025.

Education and Health Drive the Outflows
A closer look at the figures reveals that both education and healthcare are contributing significantly to the rising outflows.

Spending on foreign education rose by 15 percent year-on-year, reaching $340.94 million in H1 2025, up from $296.63 million in H1 2024. Parents continue to send their children abroad for university and postgraduate studies, citing concerns over frequent academic strikes, overcrowded classrooms, outdated curricula, and limited global competitiveness of Nigerian institutions.

At the same time, spending on foreign healthcare services climbed by 16.7 percent, rising to about $1.733 billion in H1 2025 from roughly $1.16 billion in H1 2024. This category includes medical tourism for complex procedures and specialized treatments unavailable or unreliable within Nigeria.

Together, these figures highlight a troubling paradox: while many Nigerians struggle with basic living expenses, those who can afford it are increasingly choosing to seek education and medical care abroad—often at great financial sacrifice.

A Vote of No Confidence in Local Systems
Stakeholders across the education and health sectors have strongly criticized the trend, describing it as both a national embarrassment and an indictment of Nigeria’s institutions.

Dr. Niyi Sunmonu, National President of the Congress of University Academics (CONUA), described the development as a reflection of eroding confidence in the country’s higher education system.

“It is a sad commentary and an indication of total indictment of our university education system,” he said. “If the foreign exchange was floated leading to a high devaluation of the naira and we still see this much being spent on foreign education, it shows a lack of confidence in our system.”

His remarks echo a long-standing concern: frequent industrial actions, underfunding, and infrastructural decay have weakened Nigeria’s public universities. Many families believe that sending their children abroad offers better academic stability, international exposure, and stronger employment prospects.

The healthcare sector faces similar challenges. Dr. Akinola Akinmade, Deputy Medical Director of Afe Babalola University Multi-System Hospital (ABUAD-MSH), previously told Vanguard that the surge in medical tourism reflects deep structural gaps in local healthcare delivery.

“The surge reflects critical gaps in the local healthcare system,” he said. “These gaps include limited access to specialised care, outdated infrastructure, and a growing lack of trust in domestic healthcare delivery.”

According to him, the major medical conditions driving Nigerians abroad include cardiac surgery, cancer treatment, and kidney transplants—procedures that require advanced equipment, specialized expertise, and consistent power supply, all of which remain unreliable in many Nigerian hospitals.

Economic Implications for Nigeria
The continued rise in foreign education and healthcare spending carries serious economic consequences. Every dollar spent abroad represents capital flight—foreign exchange that could have been invested in domestic institutions, infrastructure, and job creation.

At a time when Nigeria is battling forex scarcity, these outflows place additional pressure on the naira and the country’s external reserves. They also widen inequality, as only wealthier Nigerians can afford overseas options, while millions remain dependent on underfunded local systems.

Experts argue that reversing this trend requires more than patriotic appeals. It demands sustained investment, policy consistency, and visible improvements in service quality.

For education, this means:

• Stable academic calendars free from prolonged strikes
• Modern curricula aligned with global standards
• Better funding for research and facilities
• Stronger partnerships with industry and international institutions

For healthcare, the priorities include:

• Upgrading hospitals and diagnostic equipment
• Expanding specialist training and retention
• Improving health insurance coverage
• Restoring public trust through quality and accountability

Until Nigerians see tangible improvements at home, the appeal of foreign alternatives is likely to persist—even in the face of a weak currency and rising costs.

A Growing National Debate
The $1.73 billion spent in just six months has reignited a national debate about priorities and confidence in Nigeria’s systems. While the figures reflect individual choices, they also point to collective failures.

As the economy struggles under inflation and currency depreciation, the continued growth in these outflows sends a clear message: for many Nigerians, quality education and healthcare remain aspirations better fulfilled abroad.

Whether policymakers can reverse this trend will depend on their ability to transform local institutions into credible, competitive alternatives. Until then, the billions will continue to flow out—and with them, the opportunity to build stronger systems at home.