buy_forex_for_personal_travel_allowance_and_business_travel_allowance

10 Requirements To Buy Forex for Foreign School Fees In Nigeria (Updated)

Last Updated on December 6, 2021 by Ope Quadri

Assuming you’re offered a provisional admission at a Canadian university, your next hurdle is to search for the fastest channel to make payment for tuition fees. What’s the best way to go about it? What are the documents you need to begin the process?

If these are some of the questions that keep bothering you, don’t worry, the Central Bank of Nigeria (CBN) has provision for foreign students to meet their forex need through Form A.

Form A is an application form provided by the CBN for Nigerians to make payment for services abroad, invisible trade like foreign tuition, foreign training courses, mortgage, and foreign medical bills, which is available is at: https://infomediang.com/buy-forex-for-foreign-medical-bills-nigeria

The good news…

The latest directive from the apex bank is that commercial banks should treat applicant’s requests for foreign exchange instantly. You will now get your FX the same day in cash and in case of school fees to the stipulated beneficiary offshore account, provided you provided all the required documentation.

Most Nigerian banks now have Foreign Exchange Teller Points (FXTP) that will urgently treat your FX request for foreign schools fees immediately.

Specifically, there are three effective ways to pay international tuition from Nigeria, they are:

  1. Through CBN Form A
  2. Via domiciliary account
  3. Via an agent (Not recommended)

CBN Form A

Before the recent circular on the purchase of foreign exchange in Nigeria, the forex market was filled with lots of exploitative activities of bank officials who hoard forex, thereby pushing students or guardians who needed them to buy from BDC operators at a ridiculous price.

We hope that the practice has stopped following the announcement of CBN on Tuesday, July 27, 2021, that any bank found violating the new order would be sanctioned.

So, paying through Form A in Nigeria is the best way to pay for school fees abroad because it allows you to purchase forex at the CBN or interbank rate, which is the cheapest.

Bank exchange rate:

At the time of publication the CBN exchange rate for foreign school fees was:

  • USD: N412/$1
  • EUR: N489.57
  • GBP: N574.79/£

If you are buying FX from the BDCs, you would pay N150 more than the interbank rate.

Form A requirements are:

  • You must complete Form A
  • You possess a Valid means of ID (Nigerian International Passport or Foreign passport with Nigeria as the place of birth, Driver’s License, Voter’s Card, National Identity Card.)
  • Student’s valid International passport data page
  • Your Bank Verification Number (BVN)
  • Your admission letter from the foreign school that offered you admission
  • Payment invoice stating the amount to be paid to the institution
  • For a post-graduate applicant, you must include your first-degree certificate
  • Bank details of the school abroad
  • You  must fund your account with the Naira equivalent of the requested amount to be paid
  • A written instruction giving your bank the authority to debit your account
  • A written letter of indemnity if parent or guardian is making payment on behalf of their child.
  • The school you intend to make payment to must be a university or tertiary institution

Note:

The maximum limit of forex you can buy for schools fees abroad per semester is USD $15,000 or its equivalent in Pound Sterling or Euro and the fees will be paid directly to the institution’s account.

You will have to be a customer of most of the Nigerian banks to make school fees payments to institutions abroad.

Flight ticket is optional for new and returning students

Via domiciliary account

Paying through isn’t recommended for a student who doesn’t have an existing domiciliary account. Because setting up a dom account could take up to a week by some banks to send your bank details to you.

But if you already have an existing dom account all you need to do are:

  • Fund your account that will cater to your schools’ fees and banking charges
  • Present to your bank the admission letter from the foreign tertiary institution
  • Obtain Form A to fill the necessary details
  • The account will be debited.

Paying for tuition through agents

This isn’t recommended because some people can pose as an agent when they are not.

Duration of processing:

Your application will be processed within 24 hours if you have all the required documents.

Before now, it could take up to a week, 72 hours, 48 hours depending on the bank, but the CBN has vowed to sanction any bank found deliberately delaying fx payment for students.

Takeaway:

The first option, form A is the best way to pay for tuition fees abroad from Nigeria since Godwin Emefiele vowed to deal with banks that sabotaged CBN’s efforts in the forex market.

 

15 thoughts on “10 Requirements To Buy Forex for Foreign School Fees In Nigeria (Updated)”

  1. I have submitted my application for eForm A and have received mail that the application is successful since Friday 3rd of December 2021 but uptill date have not gotten a message for disbursement and my payment deadline is Friday 10 of December, the processing bank I choice is UBA, please I need assistance please

  2. Adetutu odekunle

    Is there any provision for the transfer of monthly upkeep for international students through form A from Nigeria?

    1. Yes, if you’ve not exceeded the maximum limit. If the transfer limit has been exceeded, then parent could source alternative means. Another means is: parents could make transfers from their personal dom account to fund kids’ monthly stipend abroad.

  3. Hi Ope,
    Thanks for this, how do we get the rates for CAD. Also is the rate dependent on the banks or do all banks use CBN rate so it’s the same across all banks?

    1. Hello,
      You can use cbn.gov.ng/rates/ExchRateCalc.asp to get for any currency that isn’t on the CBN exchange rate page.

      Second, the official rate is dependent on CBN rate which DMBs are statutorily mandated to comply with. But, there is a slight difference between the CBN and bank rates, usually NGN2 to NGN4 margin. So, it isn’t the same across board as it should.

      For instance, CAD CBN exchange rate at this time was NGN325.8762, meaning bank shouldn’t sell it more than NGN330. Check at your bank for a specific rate.

  4. What if I want to pay for a whole session (and not per semester) at once, and the amount is a little bit above the $15,000 limit, will that be possible?

  5. if i have the money, dollar in my dom account already, at what rate will cbn charge me. Also at what rate does cbn give in exchange to fx?

    1. As of October 8, it was N414.67/$1 at the Exporters window. But most times, there may be a slight difference from what you get at your bank. Could you check the contact us page, send us a message to get more clarification on your question?

  6. It’s been a week now that I filled the form in Union Bank and I have not been debited, my dead line is 22 September, I don’t even know what to do next.

  7. What if you are to pay in bits to the schools account, what steps need to be taken. Say for instance, you want to pay about 2000pounds out of 12000 required. do i need to have all my school fees available before going form A route?

Leave a Comment

Your email address will not be published. Required fields are marked *