This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/13/2019

Overview 

Unit:   USD thousands 

     
 2016 2017 2018 2019 (estimated) 
     
Total Market Size 77349.96 85,762.94 92,068.69 98,127 
Total Local Production 26,924.76 20,321.05 22,581.59 25,000 
Total Exports 0 0 0 0 
Total Imports 50,425.2 65,441.89 69,487.1 73,127 
Imports from the U.S. 23751 30,873 35,349 40,175 
Exchange Rate:  1 USD 199 314 360 361 
 
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)  
Data Sources:   
Total Local Production:  Industry contacts, Federal Ministry of Education, and National University Commission (NUC). 
Total Exports:  Industry sources. 
Total Imports:  Leading importers, distributors, and industry associations Imports from U.S.:  U.S. Census Bureau. 
*Figures for 2018 are based on 1.2% GDP forecast versus 0.8% in 2017. 
 
Education ranked second highest in Nigeria’s Federal Government 2018 recurrent expenditure with $1.21billion (N435.01 billion) of its 2018 budget National budget (set at USD23.92 billion), making education a key sector of focus.  The goal of this budget is to set the path of recovery of Nigeria’s education sector which has to serve a huge population but has been plagued with inadequate and inefficient management of resources, overstretched services and outdated infrastructure. Education experts view this budgetary allocation as being grossly insufficient given the deteriorating nature of the country’s public educational institutions. These have resulted in low quality of delivery, limited capacity, reduced access and a potential increase in violent crime. This has provided a boon for foreign education with many parents choosing to send their children/wards abroad for quality education. According to the Institute of International Education, Nigeria currently has 89,094 students (16,039 - 54 per cent male and 46 per cent female - studying in the U.S., with a 1.3% decline in Nigerian students who gained admissions in 2017/2018) studying abroad. Undergraduate students constitute 34 per cent, Masters students were 36 per cent, as Doctorate students formed 12 per cent, while Associate 12 per cent, non-degree and others formed five per cent. 

The country boasts over 300 combined public and private institutions of higher education, including universities, polytechnics, specialized technology colleges, and colleges of education.  Among these are 43 Federal universities, 47 State-owned and 75 private universities, according to the National Universities Commission (NUC).  Despite this seemingly large number of institutions, the capacity falls short of demand from the education-seeking population.  Based on the Joint Admissions and Matriculation Board (JAMB) statistics, about 1.8 million students took the university entrance examination in 2018 (and 1.6 million in 2017), but only less than 50% of students were admitted into these institutions. Other qualified candidates sought admission elsewhere as the system could not accommodate them.     

In 2016 the Institute of International Education reported that during the prior year Nigerian students had spent about $324 million on educational programs in the United States. Top destinations for Nigerian students within the U.S. include Texas (with 2,713 students), California (with 856 students), Maryland (with 827 students), New York (with 818 students), and Florida (with 753 students). 

Other destinations for Nigerian students include the U.K. (16,100 in 2015-16, making Nigeria the 6th largest country), Canada, Australia, and Ghana.  

Following marginal recent increases in oil prices and rising foreign reserves, the Central Bank has made forex (USD) available for direct payment to foreign universities by the nation’s commercial banks. This reduces the rigors experienced previously as parents are expected to present the invoice from the foreign institution showing the amount to be remitted and the account details for direct payment at a reduced exchange rate. This is an improvement from the situation in 2015, when the Nigerian government introduced stricter foreign exchange controls due to plummeting oil prices and low revenue. In addition, it generally took several months for the Central Bank to remit tuition and fees to foreign institutions causing many Nigerian students studying abroad to drop out of school, though temporarily.  However, the Nigerian government is encouraging foreign investors to invest in local education and training, which have potential for growth and impact across other sectors.  

In his inauguration speech to the newly constituted National Executive Council, President Muhammadu Buhari announced that his administration will invest heavily in education, amongst other sectors, charging the thirty six state governors to work with their state Ministries of Education to revamp education within their states, with the aim of developing capacity (training) and equipping them with required techniques, technology, and tools.  Similar investment will also be made in providing training opportunities in solid minerals and security industry sectors.  Further, the federal government plans to work with state governors to access the Counterpart funding provided by the Universal Basic Education Council for the development of basic education, as well as to promote interest in Science, Technology, Engineering and Mathematics (STEM) through cash transfers and free education.  It will invest in training of youth in career and technical education (CTE), particularly in developing their entrepreneurial skills.  To increase student retention in elementary schools, the federal government developed a home-grown feeding program which sees primary school children in select/pilot schools receiving at least one meal a day. In addressing the persistent teacher shortage, the federal government also created an employment scheme called N-Power which saw the training of over 500,000 unemployed graduates as teachers to be deployed to schools across the country.  Many states have also placed education as a priority sector in their budgets with the highest allocation in recurrent expenditures.  At least 17 Northern Governors plan to spend over $150.7 million (N300 billion) in developing the education sector, particularly having found a high correlation between illiteracy and insecurity (Boko Haram) in that section of the country over the past six years. 

Aside from the state governments, the International Finance Corporation (IFC), a part of the World Bank Group, is expanding its specialized management and skills training programs to thousands of small- and medium-sized enterprises in Nigeria. The IFC partners with banks, financial institutions, micro-finance institutions, consulting firms, private businesses, industry organizations in providing Business Edge Certified training to local trainers.  These trainers in turn train other local businesses through workshops and the SME Toolkit, an online solution designed to promote business growth using modern ICT tools.  At a recent seminar organized by the Diamond Bank in Lagos, investment and financial experts identified education and training among the key industry sectors with huge investment opportunities under the economic environment, as local providers with competitive prices will reap the most benefits. Sector associations, such
as the Oil and Gas Trainers Association of Nigeria (OGTAN) and the Nigerian Ship Owners Association are also seeking to close the growing skills gap by providing industry-specific professional training. 
 

Leading Sub-Sectors 

Education franchises (examples:  e² Young Engineers, The Growth Coach), professional and industry-specific training to support services in power generation/distribution oil and gas, maritime, technical academies, and financial services sectors.  There is significant demand for continuing education for Nigerian professionals and the academics, which make this sub-sector a best prospect. 
 

Opportunities 

Given the rapid growth in private investment in education, laboratory equipment, learning aids, software, hardware, books, and professional textbooks will continue to gain market position.  Industry reviews clearly show that U.S. education-based organizations should consider developing custom-made courses for evolving Nigerian industry sectors, particularly the security, aviation, environment, design and construction, technical, oil and gas, as well as financial services sectors.  Online education is also growing as a viable option and early market entrants are tapping into latent demand for on-going professional education. 
 

Web Resources 

Joint Admission and Matriculation Board (JAMB) - http://jamb.gov.ng/home.aspx   
National Universities Commission - http://nuc.edu.ng/ 
Punch Newspaper Online 
https://www.iie.org/en/Research-and-Insights/Open-Doors
Channels Television News Online
 

Local Event:

  • USA FAIR 2020: ACCESS NIGERIA (April 28-30, 2020 - TBC)

Eko Convention Center, Victoria Island, Lagos.
Organized by the US Commercial Service exclusively for American exhibitors to meet thousands of prospective Nigerian businesses.
(Please contact Anthony.Adesina@trade.gov for more information)

For further information on education and training, e-mail Anthony Adesina, Commercial Specialist, U.S. Commercial Service, Lagos, Nigeria at: Anthony.Adesina@trade.gov 


 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.