The Central Bank of Nigeria (CBN) announced exchange rate unification on June 14, 2023, allowing banks to fix their rates as Nigeria launched on economic reforms.
The announcement by the CBN in June intensified the situation of the naira, forcing it to soar upward immediately.
Following the announcement, banks began selling a dollar for N650, a greater than 50% increase.
A month later, the same dollar was selling for N900 in Importers and Exporters (I&E) windows and around N1,000 on the streets.
The change prompted all aspects of international travel to double, including airfare, visa processing costs, Proof of Funds, Basic Travel Allowance, IELTS examinations for student visas, and school tuition.
Foreign airline tickets are priced in US dollars. A weak Naira means more expensive travel.
According to a recent research on international travel, travel agents and companies reveal how much it will cost a Nigerian to travel overseas under the new FX policy.
Prior to the CBN’s announcement, a return ticket to the UK on Qatar Airways cost between N600,000 and N650,000 in economy class. It is now worth more than a million naira. It is more than N4 million on British Airways.
A visa processing fee of $500 is required for travel to the United Kingdom. According to the current currency rate, one dollar equals around N1000. This means that visa processing in Nigeria will cost N500,000.
Proof of funds is financial evidence from a potential traveler’s bank account or sponsor that they must present during visa processing.
Nigerians intending to travel to the UK on a student visa will need to show proof of money of at least £9,207.
At the time of writing, a pound in the street market was worth roughly N1,200. As a result, a student visa holder must present proof of at least N11 million in their bank account.
Taking the International English Language Testing System (IELTS) tests is one of the conditions for traveling to the UK on a student visa.
The exam is a standardized international English language competence examination for non-native English speakers. The examinations will cost a candidate N107,500.
Most Nigerian students who travel to the UK on student visas pursue postgraduate degrees, which can take one to two years to finish full-time and three to four years to complete part-time.
Fees are typically paid in installments. However, the average school fees for international students, including Nigerians, at UK institutions range from £16,000 to £24,000 per year, translating to N19 million to N29 million per year.