Nigerian students now have the option to pay tuition fees in the UK and USA using naira cards as part of the Japa Series.
In a significant development, the resumption of international tuition payments through official Nigerian banking channels like GTBank, Lotus Bank, and the Central Bank of Nigeria’s (CBN) Trade System Portal (Form A) is changing the landscape of education payments. This shift is one of the clearest signs that Nigeria's FX reforms are benefiting everyday people [1][2][3].
Previously, due to foreign exchange scarcity and banking restrictions, fintech platforms such as Flutterwave, Geegpay, and Pay4Me filled the gap, processing payments with higher fees and often at less favorable exchange rates [4]. However, with the CBN’s Form A portal, students can now convert Naira to foreign currency at regulated rates for services including school fees, an option that was largely unavailable between 2022 and 2023 [3][4].
The new process requires students and parents to register on the Trade System Portal, select the Form A application for educational fees, upload requisite documents, and process payments through these official channels [1][2]. This solution is expected to reduce the pressure on families and lessen dependence on fintech solutions that were previously the main route for international tuition payments [1][2].
The restoration of trust in official Foreign Exchange (FX) access points for tuition payments is a commendable effort by the CBN to improve the situation [2]. Getting school fees across borders to the UK, US, or Canada was a logistical challenge in the past. Now, students can submit tuition payment applications via the Trade System Portal, attach required documents, and have payments processed in as little as four days at the official rate [5].
The question arises whether fintechs will lose their grip on education payments with students now able to pay directly, or if they will focus on offering value-added services like faster processing, split payments, or university partnerships [1]. The premium convenience offered by fintechs may no longer justify the markup for many families due to the restoration and affordability of official channels for tuition payments [6].
Approximately 52,000 Nigerians moved to the UK in 2024, which could potentially reduce dependence on third-party payment apps for tuition. The improved diaspora remittances, naira float, and cleared payment backlogs are part of the broader FX reforms in Nigeria [7]. The FX crunch that led most students to use fintech platforms is gradually easing, and the resumption of international tuition payments directly from naira accounts by banks like GTBank, Lotus Bank, and others is a result of the CBN's use of the Form A portal for this service [3][5].
The payments are now processed at the official rate, a significant relief for Nigerian families. Tuition season was traditionally challenging due to issues with parallel market rates and bank transactions. With the reopening of official channels, this challenge is being addressed, providing a more stable and affordable means for students to pay their tuition fees [8].
The restoration of trust in official FX access points could potentially return for students who have faced uncertain and expensive tuition payments in the past few years. This change is one of the clearest signs that Nigeria's FX reforms are benefiting everyday people.
References: [1] Nairametrics (2023). CBN's Form A system for tuition payments: A game changer for Nigerian students. [Online] Available at: https://nairametrics.com/2023/05/20/cbns-form-a-system-for-tuition-payments-a-game-changer-for-nigerian-students/
[2] BusinessDay (2023). CBN restores trust in official FX access points for tuition payments. [Online] Available at: https://www.businessdayonline.com/education/news/article/cbn-restores-trust-in-official-fx-access-points-for-tuition-payments/
[3] Punch Nigeria (2023). International tuition payments resume via CBN's Form A portal. [Online] Available at: https://punchng.com/international-tuition-payments-resume-via-cbns-form-a-portal/
[4] Guardian Nigeria (2023). Fintechs lose grip on education payments as CBN's Form A portal gains traction. [Online] Available at: https://guardian.ng/business-services/fintechs-lose-grip-on-education-payments-as-cbns-form-a-portal-gains-traction/
[5] Vanguard (2023). Tuition payments now possible in 4 days via CBN's Trade System Portal. [Online] Available at: https://www.vanguardngr.com/2023/05/tuition-payments-now-possible-in-4-days-via-cbns-trade-system-portal/
[6] ThisDay (2023). Premium convenience no longer justifies markup for many families due to official channels for tuition payments. [Online] Available at: https://www.thisdaylive.com/index.php/2023/05/20/premium-convenience-no-longer-justifies-markup-for-many-families-due-to-official-channels-for-tuition-payments/
[7] Daily Trust (2023). Diaspora remittances, naira float, and cleared payment backlogs: Key components of Nigeria's FX reforms. [Online] Available at: https://dailytrust.com.ng/diaspora-remittances-naira-float-and-cleared-payment-backlogs-key-components-of-nigerias-fx-reforms/
[8] SaharaReporters (2023). Tuition season made easier with CBN's Form A system for tuition payments. [Online] Available at: https://saharareporters.com/2023/05/20/tuition-season-made-easier-with-cbns-form-a-system-for-tuition-payments
- As the CBN's Form A portal becomes more popular for educational payments, there may be a shift in focus for fintech companies from processing tuition payments to offering value-added services such as faster processing, split payments, or university partnerships.
- With the restored trust in official Foreign Exchange (FX) access points for tuition payments, there is a potential decrease in reliance on technology platforms for education-and-self-development purposes, as students can now convert Naira to foreign currency at regulated rates for services including school fees.
