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NIGERIAN students studying in Britain's universities will now be able to pay for their fees in naira after the British government through its export credit agency UK Export Finance (Ukef) agreed to start accepting such payments.
Among the countries with the highest number of students in higher education across the UK, Nigeria has over 17,000 undergraduate and post-graduate in its tertiary institutions. Ranking among the top 10 sources of students alongside China, India, Malaysia, USA, Hong Kong, Saudi Arabia, Singapore, Thailand and Canada, there are more Nigerian students in the UK than from any European nation.
Of late, however, with the downturn in the Nigerian economy, many parents and state government have struggled to pay the fees of their wards in UK universities. This is mainly because of the scarcity of foreign exchange that has led to Nigerian commercial banks being unable to furnish their customers with hard currency, which has led to hundreds of students having to end their academic pursuits.
In response to the crisis, the British government has amended its payment policy so Ukef can now accept naira payments from Nigerian business owners. According to Ukef, the local currency financing structure follows the same format as a conventional buyer credit in sterling or any other currency.
Essentially any Nigerian businesses buying British goods or services and taking out a loan in naira from a bank in Nigeria can benefit from the UK government-backed guarantee. Ben Ainsley, the head of the department for international trade (DIT), Nigeria, said the agreement is the feedback from the UK trade envoy’s visit to Nigeria in November.
He added: “UK government will now be able to support finance in naira to Nigerian projects procuring from the UK. This can enable businesses to manage foreign exchange risks and many times, to negotiate better terms with local banks.”
Paul Arkwright, British high commissioner to Nigeria, added: “This is a clear indication of how much value the UK places on its relationship with Nigeria. It will provide a firm foundation for a significant increase in trade and investment between both countries.
“The UK believes that no one intending to transact with British businesses should be hindered by lack of financing. By allowing Nigerian businesses easier access to world-class goods and services, we are supporting both the Nigerian and the British economy.”
Mr Ainsley pointed out that this development makes Nigeria one of the three West African countries on Ukef’s pre-approved currencies list. He added that it was a key issue raised by members of the local business community when a UK trade envoy visited Nigeria last November, who then took this feedback to London.