In spite of soaring exchange rates and inflation-driven cost-of-living challenges, Nigerians increased spending on foreign education and health services by 19 per cent to $1.73 billion in the first half of 2025 (H1’25), marking the highest level in four years since 2022.

Analysis of data from the Central Bank of Nigeria’s (CBN) quarterly statistical bulletin by Vanguard revealed a consistent upward trend in the amounts spent abroad on education and health. After a 74 per cent COVID-19-induced drop to $1.14 billion in H1’23 from $4.347 billion in H1’19, spending rose by 21.6 per cent to $1.457 billion in H1’24, before climbing another 19 per cent to $1.73 billion in H1’25.

Specifically, expenditure on foreign education increased 15 per cent year-on-year (YoY) to $340.94 million in H1’25 from $296.63 million in H1’24, while spending on foreign health services rose 16.7 per cent YoY to $1.733 billion from $1.16 billion in the same period. Over two years, the combined increase in spending on foreign education and health amounted to $578 million, representing a 50 per cent rise.

This growth persists despite the Naira depreciating over 99 per cent, with the exchange rate climbing to N1,553 per dollar at the end of H1’25 from N769 per dollar in H1’23.

The trend has drawn sharp criticism from stakeholders in both sectors. The National President of the Congress of University Academics (CONUA), Dr. Niyi Sunmonu, described the surge in foreign education spending as a “national embarrassment” and an indictment of the domestic university system. “It is a sad commentary and an indication of total indictment of our university education system. If the foreign exchange was floated leading to a high devaluation of the naira and we see this much being spent on foreign education, it is a lack of confidence in our system,” he said.

Experts have also pointed to weaknesses in the local healthcare system as a driving factor behind increased foreign medical spending. Dr. Akinola Akinmade, Deputy Medical Director of Afe Babalola University Multi-System Hospital (ABUAD-MSH), noted that the surge reflects critical gaps in domestic healthcare, including limited access to specialised care, outdated infrastructure, and a growing lack of trust in local health services.

The rising expenditure underscores a growing preference among Nigerians for overseas education and healthcare, highlighting persistent challenges in local institutions and infrastructure despite economic headwinds.