Despite the over 30 per cent depreciation of the naira, Nigerians increased spending on foreign education and health services by 26 per cent, to $2.3 billion in the first nine months of 2024.
This upsurge in spending, according to stakeholders in the education and health sectors, is an indictment on the country’s university system and a reflection of critical gaps in the local health care system.
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Financial Vanguard analysis of data from the Central Bank of Nigeria, CBN, Statistical Bulletin revealed that spending on foreign education rose by 26.5 per cent, YoY, to $1.8 billion in first nine months of 2024, 9M’24, from $1.44 billion in same period of 2023, 9M’23.
Similarly, spending on foreign health services rose by 24.8 per cent, YoY, to $465.67 million in 9M’24 from $366.05 million in 9M’23.
Consequently, spending on both services rose by 26.6 per cent to $2.387 billion in 9M’24 from $1.81 billion in 9M’23.
This represents continuation of the upward trend in spending on foreign education and health services, which commenced in 2023, after a three year decline from 2020 to 2022.
According to CBN data, spending on both services in 9M’23 rose by 2.6 per cent to $1.81 billion from $1.76 billion in 9M’22.
The above development is however contrary to expectation that the 233 per cent depreciation of the naira between 2023 and 2024 will lead to decline in demand for forex.
Vanguard