Last updated on June 23rd, 2022 at 08:43 pm
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.
The good news…
Nigeria’s apex bank has simplified applications for forex through its digital platform called Trade Monitoring System where you can submit application for forms A, NCX, NXP.
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:
- Through CBN Form A
- Via domiciliary account
- 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
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.
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.