Universities in England will pay an annual levy of $1,200 for each international student above an exemption threshold from August 2028. The policy, announced by Education Minister Josh MacAlister, aims to generate $594 million in its first year. The levy covers both new and existing international students. This move is expected to affect thousands of Nigerian students studying in the UK. The policy was first announced in the government's 2025 budget.
The proposed arrangement states that universities will pay $1,200 annually for every international student beyond their first 220 overseas enrolments, who will be exempt from the charge. The Office for Students will oversee the implementation using university enrolment data. The government projects that revenue from the levy will rise to $641 million by 2030-2031. This policy has been under consultation, with an impact assessment published in 2025 and an updated analysis expected shortly.
According to the UK Home Office, Nigeria recorded 26,060 sponsored study visas in the year ending June 2026. This makes Nigeria one of the major sources of international students in the UK, behind China and India. In 2024, Nigerian students generated $1.7 billion in UK higher education export revenue. The new levy could add to the financial pressures facing universities and overseas applicants.
Education Minister Josh MacAlister argued that a planned increase in domestic tuition fee caps could generate about $6 billion for higher education providers over five years. This is compared with a projected levy cost of less than $1 billion. The government aims to support England's higher education and skills system with the revenue generated from the levy.
Some British universities have already announced tuition fee increases for international students. Birmingham City University raised fees for continuing international students by 2% for the 2026-2027 academic year, with a further 3.5% increase planned for 2027-2028. The University of Bath has also advised overseas students to budget for annual fee increases of up to 8%.
The new levy and stricter visa sponsorship requirements are likely to impact Nigerian students and universities. Some UK universities have withdrawn admission offers to Nigerian, Pakistani, and Bangladeshi applicants over concerns about compliance with these requirements. International students collectively generated an estimated $23.9 billion in revenue for the UK in 2024.
The UK government's policy has sparked concerns about the financial pressures facing universities and overseas applicants. With Nigeria being one of the largest international student groups in the UK, the new levy could have significant implications for the country's higher education sector. The government is expected to continue monitoring the impact of the policy and making adjustments as necessary.
Key points
- Universities in England will pay $1,200 per international student above an exemption threshold from August 2028.
- The policy aims to generate $594 million in its first year and support England's higher education and skills system.
- Nigerian students are among the largest international student groups in the UK, with 26,060 sponsored study visas recorded in the year ending June 2026.
