CBN Governor Yemi Cardoso has stated that the increase in foreign exchange rates was caused by Nigerian students studying abroad.
The foreign exchange rate has skyrocketed from less than a thousand naira to 1,500 in less than two weeks. This has affected the purchasing power of the Naira which in turn resulted in the inflation of goods and services around the country.
In a recent address, the CBN Governor stated that the high exchange rate is a result of a decline in the supply of US dollars coupled with its growing demand. Yemi Cardoso said unlike in the late 90s, there is a spike in the number of Nigerians studying abroad. Backing up his claims with data, Cardoso highlighted the impact of Nigerian students abroad. According to UNESCO, the number of Nigerian students abroad increased from less than 15,000 in 1998 to over 71,000 in 2015.
Cardoso said by 2018, this number reached 96,702 students according to World Bank statistics.
He stated, "Looking at the demand side of the exchange rate, it is important to note the growing number of Nigerian students studying abroad. In the 1980s and 1990s, the need for US dollars for their living expenses was minimal. However, recent data show a significant change.
Consequently, over the past decades, foreign exchange for education and healthcare has totaled nearly $40 billion. Notably, this amount surpasses the total current foreign exchange reserves of the CBN."