Nigerian Students can Pay US, UK tuition with Naira Cards

Early this month, Wema Bank and UBA Banks announced the resumption of the use of naira cards for foreign transactions. However other banks are yet to make this announcement known to the general  public. 

And to this extent some Nigerian banks have stated that anyone can use the Central Bank of Nigeria’s (CBN) “Form A” online to pay for foreign tuition costs straight from their naira accounts.

Nigerians can use the Form A platform, a CBN-regulated conduit, to pay for qualified services like training programs, medical expenses, and school tuition through the official foreign exchange window.

The announcement comes after foreign exchange (FX) liquidity improved recently.

GTBank informed its customers via email on Monday that applicants who are paying for their bachelor’s and graduate degrees overseas can use the method. GTBank also verified that the service would cover postgraduate and bachelor’s degree costs overseas. 

The foreign exchange market in Nigeria has significantly improved. Banks such as First Bank, GTBank, and Zenith stopped allowing foreign transactions using Naira cards between 2022 and 2023. Students began using fintech sites such as Geegpay and Flutterwave.

This policy is already having a side effect. While institutions gain from prompt payments, which lessen administrative duties and complicate visa-related issues, students are hopeful about the lower financial hurdles.

“The system is robust with better FX availability, ensuring seamless transactions,” said a GTBank representative, highlighting the system’s dependability.

These substitutes were frequently more expensive. The market has stabilized as a result of recent CBN actions, such as naira floating. Better FX management and a rise in diaspora remittances have also been beneficial.

The notice said, “Pay international tuition fees directly from your Naira account.”

Customers must register and apply through the trade system portal at http://www.tradesystem.gov.ng in order to use the service.

Clicking on the Form ‘A’ path to apply for educational fees. Select GTBank as the processing bank, include the necessary paperwork, and submit the application, according to GTBank.

Lotus Bank likewise alerted its customers about the use of their facility for processing foreign fees in a similar notification.

Register at www.tradesystem.gov.ng, the Trade System Portal. To apply for educational fees, choose Form “A.” The bank advised selecting Lotus Bank as the processing bank, submitting the application, and attaching the necessary paperwork.

A Lotus Bank representative told a media agency that although processing overseas fees was never stopped, low customer traffic resulted from the naira’s floating and the lack of foreign exchange. Lotus Bank also said that it had observed that low FX availability restricted the process’s utilisation, even though it was never suspended. This is a reflection of the better FX market circumstances in Nigeria.

“The procedure has always been, but too many people are chasing the money because there isn’t enough of it. However, there is money these days,” the official stated.

There was some opposition when the president floated the naira because of the disparity in exchange rates and the inclusion of more paperwork. People felt intimidated by the processes as a result.

With a view with the processing period which was reduced to four days. The bank representative also explained that the availability of FX has reduced the time required to make overseas fees to four days.

Due to a lack of foreign exchange at the time, Nigerian banks stated in 2022 that requests for overseas school fees and maintenance via Form A would be handled within 120 days.

He went on to say that the application procedure comprises the treasury team sourcing the dollar, which is T+2 (two business days), after which the customer will send an instructions. This implies that if a customer provides the standing instructions now, the customer will be charged $1 by Thursday, and the money will be sent to the school of choice by Friday.

A tax clearance certificate, an international passport, an admissions letter, a school invoice, instructions to debit your account and pay the school, and a form A are the documents needed to pay the school fee, the official stated.

A month has passed since commercial banks declared that they will resume accepting foreign payments for transactions using their respective Naira cards.

This approach is welcoming as it places Nigeria in a position to become a worldwide education hub as the country’s economy begins to revive, as seen by better credit ratings and cleared foreign exchange backlogs. Families no longer have to worry about crippling exchange rates, and students are free to pursue their academic goals.

However, in order for the system to function properly, banks and institutions should improve communication to expedite transactions, and students must make sure that the right paperwork is submitted to prevent delays.

The option to use Naira cards to pay for tuition abroad is a revolutionary move in making education more accessible to Nigerian students. This strategy may open the door for more advancements in overseas payments as the CBN keeps the FX market stable, giving aspirant students nationwide hope.