CBN faults report on increase in payment of overseas tuition

The Central Bank of Nigeria (CBN) has faulted reports in media circles suggesting that the payments of overseas tuition fees from Nigeria will cost more from January 2023, due to the purported withdrawal of the “Form A” Discounted rate, with effect from December 31, 2022. 

The Bank’s position followed reports in certain media, which quoted a tertiary institution in the United Kingdom as claiming that Nigeria had withdrawn the Central Bank “Form A discounted rate” in order to encourage more funds to remain within the Nigerian economy. The advisory from the school purportedly urged new and returning students from Nigeria “to take advantage of the Central Bank Form A discounted rate while this is still available.”

Speaking with newsmen in Abuja, on Wednesday, June 22, the Director, Corporate Communications Department, Mr Osita Nwanisobi, described the report as false and the purported advisory, as misleading and speculative. 

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Nwanisobi said the CBN had not issued such a policy, even as he cautioned concerned parents and students to disregard any advisory to pay up as much portion of their outstanding fees as possible, through Flywire, prior to December 31, 2022.

While also reminding all stakeholders that front-loading (for both visible goods and invisible) was contrary to the provisions of extant regulations, the CBN spokesman assured that the bank will continue to meet all legitimate demands for foreign exchange. 

Nwanisobi therefore urged all authorised dealers to ensure that payments for tuition outside Nigeria are made no earlier than 30 days prior to due date, even as he charged them to put in place measures to forestall abuse.

It will be recalled that a Manchester-based university was purported to have issued an advisory urging students whose tuition were paid from Nigeria to pay up as much portion of their outstanding fees as possible, through Flywire, prior to December 31, 2022, based on claims that the Central Bank of Nigeria planned to withdraw the “Form A” discounted rate in order to encourage more funds to remain within the Nigerian economy. 

Form A is an application form designed by the Central Bank of Nigeria to pay for service transactions (invisible trade)

The form allows customers to purchase forex at the CBN or interbank rate to make payments for eligible services as predetermined by the foreign exchange manual.

The e-Form ‘A’ replaced its hardcopy from November 30, 2021.