The University of Dundee in the United Kingdom is grappling with a financial crisis, partly attributed to President Bola Tinubu’s administration’s devaluation of the naira.
According to The Sunday Times, the university’s interim principal, Shane O’Neill, cited a “severe drop” in international student enrollment as a major factor in the institution’s financial struggles. Mismanagement of funds and excessive spending by senior staff have also been linked to the crisis.
O’Neill acknowledged that the financial deficit had been looming for some time but was only recently fully recognized. Before the decline in foreign student enrollment, the university contributed nearly half a billion pounds annually to the city’s economy and significantly more to the UK economy, with tuition fees accounting for a third of its revenue.
To address the crisis, the university has brought in external auditors to review its finances and is preparing to cut over 600 jobs. Dundee is not alone in facing financial distress—seven other Scottish universities are reportedly in similar situations. Edinburgh University has already informed staff that “nothing is off the table” as it seeks ways to bridge its £140 million deficit.
The crisis reflects broader economic challenges in the UK’s education sector. A report by Enroly revealed a 37% drop in foreign student applications compared to the previous year, largely due to Nigeria’s currency crisis and stricter visa regulations aimed at reducing migration.
Nigeria had been a major contributor to UK student enrollment, surpassing EU countries with 33,000 students. However, this figure has fallen by 71% following the devaluation of the naira and tighter immigration policies.
Tinubu’s decision to devalue the naira in 2023 saw the currency weaken significantly, with the exchange rate plummeting from N388/USD in January 2023 to over N1600/USD by August 2024. The pound, previously exchanged at N519, surged past N2000/GBP, making it increasingly difficult for Nigerian students to afford tuition fees.
As UK universities rely heavily on foreign students for financial stability, the ongoing currency crisis continues to put pressure on institutions that depend on international enrollment to sustain their operations.
