FX Liquidity Boost Restores Naira Payments for Foreign School Fees and Medical Bills in Nigeria
Reporters: Okafor Joseph and Rita Uzuh, Senior Reporters, SpringnewsNG Media Limited
The long-awaited relief for Nigerian parents and students paying for education abroad has arrived as commercial banks resume naira-denominated payments for international school fees. This development follows a significant improvement in foreign exchange (FX) liquidity, easing months of frustration caused by delayed or suspended payments.
Previously, Nigerians seeking to pay tuition or medical bills overseas faced long processing times and often turned to the parallel market to source dollars, paying steep premiums. However, with the recent stabilization of FX inflows and reforms by the Central Bank of Nigeria (CBN), banks can now process Form A transactions more efficiently, using naira to facilitate foreign payments at official exchange rates.
Banks Resume Naira-Denominated Transactions
Multiple banks, including GTBank, Ecobank, and Lotus Bank, confirmed the restoration of services under the CBN Trade Monitoring System (TRMS). Customers can now submit applications for tuition or medical payments in naira, which the banks convert to foreign currency and remit directly to the institutions abroad.
According to banking officials, processing times have improved drastically, with some payments now completed within four business days, compared to the up to 120 days experienced in 2022 and 2023.
A treasury officer at one of the participating banks, who requested anonymity, said:
“The increase in dollar supply has allowed us to clear pending Form A applications and resume regular processing. Parents no longer need to rely on black-market rates or fintech alternatives that were more expensive.”
Requirements for Applicants
To make foreign tuition payments through the official channel, applicants are required to:
- Register on the CBN Trade System Portal (www.tradesystem.gov.ng).
- Submit supporting documents, including admission letters, tuition invoices, and international passports.
- Provide proof of tax clearance and a signed debit authorization to process the naira payment.
Successful applicants pay in naira, and the bank remits the equivalent in dollars or pounds to the foreign school.
Experts Commend Policy Impact
Economic analysts have praised the return of official naira payments for international obligations, saying it will reduce pressure on the parallel market and stabilize the naira in the medium term.
Umar Yakubu, an economic policy analyst, noted:
“Allowing naira payments for foreign tuition is a win for the economy. It strengthens the official FX market, reduces demand for black-market dollars, and provides relief to parents and students studying abroad.”
The CBN has emphasized that the policy is part of a broader FX market reform aimed at improving transparency, deepening liquidity, and restoring confidence in Nigeria’s financial system.
Outlook
Analysts believe that if FX inflows remain stable and banks continue to process Form A applications promptly, Nigerian students and medical travelers will enjoy faster, cheaper, and more predictable international transactions.
For many families, this marks the first time since 2022 that naira-only payments for foreign services are reliable, signaling a turning point in Nigeria’s FX management efforts.
