Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), attributed the depreciation of the naira to the increasing number of Nigerians seeking education and medical treatment abroad. Speaking during a plenary at the House of Representatives on Tuesday, Cardoso highlighted the surge in demand for US dollars due to the growing trend of Nigerians studying overseas.
According to Cardoso, data from UNESCO’s Institute of Statistics indicated a significant rise in the number of Nigerian students abroad, increasing from less than 15,000 in 1998 to over 71,000 in 2015, and further to 96,702 in subsequent years. Additionally, CBN’s Balance of Payment compilation for the first half of 2023 revealed substantial spending on foreign education and healthcare, amounting to $896.09 million and $245.68 million, respectively, along with other personal foreign needs.
The governor emphasized that between 2010 and 2020, Nigerians spent approximately $28.65 billion on foreign education and $11 billion on medical treatment abroad, totaling nearly $40 billion, surpassing the country’s total current foreign exchange reserves. Cardoso suggested that a reduction in demand for dollars for overseas education and healthcare could lead to a stronger currency.
However, Cardoso’s remarks drew criticism from some Nigerians online. Responding to the governor’s speech, users expressed skepticism about the claimed impact of students’ foreign expenses on the country’s foreign exchange challenges. Some users questioned the accessibility of foreign exchange for education, suggesting that only children of politicians might benefit from such privileges.
The CBN governor’s assertions underscore the ongoing debate surrounding Nigeria’s foreign exchange policies and the broader economic implications of citizens seeking education and healthcare abroad. As discussions continue, stakeholders grapple with finding sustainable solutions to address the country’s currency challenges amidst increasing demand for foreign exchange.
