MARKET NEWS

Nigeria’s foreign exchange impasse is reshaping migration patterns, with many aspiring emigrants reconsidering moves to traditional tier-one countries like the US, UK, and Canada.

As migration costs soar and visa regulations tighten, alternative destinations in Europe—such as Portugal, Finland, Hungary and Sweden—are gaining appeal due to lower visa requirements, a cheaper cost of living, and pathways to permanent residency.

In June 2023, President Bola Tinubu devalued the local currency by floating it. Before this, the naira was pegged at approximately N460 to the US dollar. Since then, it has depreciated sharply, surpassing N1,500/$1 by March 2025, driving up the cost of plane tickets, visa fees, and other relocation expenses.

“Going abroad is quite discouraging now because the financial implications and the disposition of the Trump administration toward foreigners in America are something to worry about,” developmental economist Illias Aliyu told The PUNCH.

He said the world is increasingly one where jobs can be done remotely, potentially reducing the need to relocate.

Stricter immigration policies in key destinations are adding to the challenge. The UK has restricted international students from bringing dependants unless they’re enrolled in specific postgraduate courses, significantly affecting Nigerian applicants.

The British government generated over N68bn from processing over 225,000 UK visa applications from Nigerians between June 2023 and June 2024.

Canada has also tightened its rules by reducing study permits in 2025, making it more competitive for Nigerian students, discontinuing the Student Direct Stream, and requiring language proficiency tests for post-study work visas.

“In the past, we would receive numerous applications from Nigerian students looking to study abroad, but this year has seen a slowdown in enquiries,” consultant at Travel and Tours Limited Maureen Chimaobi said during a call.

She noted that the “jackpot syndrome”—where students apply to multiple foreign universities hoping for admission and scholarships—has also declined. “It’s not like the last two years (2023–2024), when we’d see a surge in applications.

The current situation has made students reconsider their options.” Chimaobi added, “When students want to study abroad, they need to convert their money to cover school fees and living expenses, and this has become a significant burden.”

With access to foreign exchange tightening, Nigerians are turning to alternative financing methods. Informal lenders, cooperative societies, and peer-to-peer lending arrangements have become popular ways to raise capital.

Some migrants are also pursuing government-backed scholarships and work-study opportunities in countries with lower migration costs.

An employee at Access Bank, Chidinma Onyewere shelved her plans to study abroad due to rising costs but is reconsidering after advice from a former colleague who successfully relocated to the US.

“She told me to start applying to schools and get admission first, that everything else would fall into place,” Ocho said in a chat. “Most people who travel take loans and pay them off once they get there.”

Another travel agent based in Lagos, who requested to remain anonymous, noted that several European countries offer relatively easy pathways for Africans, particularly for those with a secondary school certificate.

These countries not only provide educational opportunities but also have frameworks that facilitate residency and eventual citizenship for international students, including those from Africa.

Justice Okamgba