CBN data indicates that Nigerians predominantly allocate their dollars to overseas medical and educational expenses. The funds designated for these services rose from $1.76 billion in 2021 to $1.81 billion in 2022. However, despite a temporary strengthening due to CBN intervention, the naira has since resumed its decline.
In the span of nine months from January to September 2023, the Central Bank of Nigeria observed a 49.22% increase in its dollar supply for overseas medical and educational expenditures, reaching $1.81 billion.
Nigeria’s expenditure on international education and health-related services abroad saw a slight increase in 2022, totaling $1.81 billion compared to $1.76 billion in 2021. This amount pales in comparison to the $2.49 billion allocated during the same period in 2021.
The Central Bank defines the balance of payments as a comprehensive record of economic and financial transactions between residents and non-residents within a specific period.
Nigerians’ inclination towards seeking healthcare abroad can be attributed to subpar domestic health infrastructure, while the pursuit of international education has escalated amidst a faltering educational system and economic challenges.
In recent years, Nigeria has witnessed a decrease in dollar inflow due to declining foreign investments, reduced crude oil revenues, and diminished remittances from the diaspora.
Despite this trend, Olayemi Cardoso, CBN Governor, highlights medical tourism and the rising number of Nigerians studying abroad as primary factors driving the nation’s demand for foreign currency.
During a speech to the House of Representatives, Cardoso disclosed that Nigerians spent over $40 billion on healthcare and education abroad between 2010 and 2020.
He emphasized the significance of Nigerian students studying abroad in understanding the exchange rate dynamics.
According to a 2023 report by the Institute of International Education, the number of Nigerian students enrolled in US colleges and institutions increased by 22.2% in the 2022–2023 academic year, reaching 17,640 students.
Furthermore, the report indicates a higher number of Nigerians residing in the US in 2022 compared to the previous year.
Nigeria stands as the only African nation among the top 10 countries with the highest proportion of students studying in the United States. Insufficient medical equipment and a lack of confidence in domestic medical facilities are cited as the primary reasons for medical travel.
