How to Secure Your Study Finances Amid Naira Fluctuations

How to Ensure Your Study Abroad Finances are Secured Amid Naira Fluctuations

After months of planning, you’ve picked your dream university, secured accommodation, and are just a step away from submitting your visa application. But amidst all the excitement, have you paused to consider how the Naira Fluctuations and the ever-changing exchange rate might impact your financial plans?

For many Nigerian students, the excitement of studying abroad can be overshadowed by the stress of financial planning. With the naira’s value constantly shifting against major currencies like the pound, dollar, and euro, what seemed like enough money in your account today could suddenly fall short tomorrow. This is not just a minor inconvenience—it could be the difference between getting your visa approved or facing rejection.

Why Exchange Rate Matters Now More Than Ever

Let’s break it down. When you apply for a student visa, one of the key requirements is proving that you have enough funds to cover your tuition and living expenses. This involves submitting a bank statement that shows you can financially support yourself. But here’s the catch: there might be Naira Fluctuations as the exchange rates can fluctuate dramatically, and they have been.

Naira’s Decline: 2022-2023 vs. 2023-2024

The exchange rate fluctuations between 2022 and 2024 tell a cautionary story. Below are tables illustrating how the naira has weakened over this period against major currencies.

Here’s a closer look at how the exchange rate has fared since October 2023

Real-Life Scenario of one of our Student

Our student, Stanley, received an admission offer from Bournemouth University, a top UK institution, for the September 2024 intake. His tuition fee was £17,000, with a deposit of £5,000, which he promptly paid upon receiving his unconditional offer, leaving a balance of £12,000.

In addition to his tuition balance, Stanley calculated his living expenses, which amounted to £9,207, as Bournemouth is located outside of London. His total financial requirement for the visa application stood at £21,207. As of July 18, 2024, the exchange rate was ₦2,101 per £1, making the naira equivalent of his required proof of funds around ₦44.5 million. Confident in his calculations, Stanley began preparing his bank statement.

However, despite advice from our counsellors to add a buffer due to potential exchange rate fluctuations, Stanley chose to proceed with ₦44.6 million in his bank account, as it covered the required £21,207 as of late July 2024.

On August 1, 2024, disaster struck. The naira weakened sharply against the pound, and the exchange rate surged to ₦2,130 per £1. Suddenly, Stanley’s ₦44.6 million was no longer enough. He now needed an additional ₦700,000 to cover his £21,207 proof of funds. This unforeseen change left Stanley scrambling to make up the difference, putting his visa application—and his entire study abroad plan—at serious risk.

This nightmare scenario could have easily been avoided with a bit of foresight, like adding a buffer to account for exchange rate fluctuations.

Avoid Last-Minute Surprises: The Importance of Adding a Currency Buffer

Here’s a smart move: to avoid any last-minute surprises, add an extra ₦300 to ₦400 on each foreign currency when calculating your budget. 

Before April 2022, students were advised to add ₦50 to ₦100, but given the rapid fluctuations, that’s no longer sufficient. 

By planning ahead and adding an extra ₦300 to ₦400 when calculating your budget, you can secure yourself against these unexpected shifts Such as Naira Fluctuations. This small financial cushion ensures that even if the exchange rate changes unfavourably, your bank statement will still reflect the required funds, keeping your visa application on track and your dream of studying abroad within reach.

Conclusion 

Your study abroad journey is a significant investment in your future. By anticipating potential challenges—like fluctuating exchange rates—and planning accordingly, you can ensure that your finances are secure, your visa process is smooth, and your focus remains on what truly matters: making the most of your academic adventure abroad.

At Negxy Concept Limited, we’ve helped countless students navigate the complexities of studying abroad, including the challenges posed by fluctuating exchange rates and so much more.

Check out our Instagram post for tips on how to prepare your bank statement to avoid visa denials.

Click here to contact us for your student visa assistance.