UK Universities Fear Bankruptcy As Applicants from Nigeria & India Drop

The latest news in the UK concerns the financial crisis facing UK universities. Leading institutions, like the University of Northumbria, the University of York, and the University of Lincoln, among others, face a rise in financial deficit. Universities in the UK are experiencing a sharp decline in international student applications for higher education. There is a one-third reduction in the number of overseas students looking forward to studying in the UK. 

According to the Higher Education Statistics Agency, in the academic year 2021-2022, international students comprised 24% of the total number of students studying in UK universities. However, the figures have shifted for the upcoming academic year. Estimates are that the universities may face a decline of 37% in the total number of international students coming to the UK for higher education. 

The decline in overseas student applications has led university leaders to make tough decisions to reduce the number of teaching staff and think of cutting courses. John Rushforth, Executive Secretary of the Committee of University Chairs, points to the crisis, saying, “I’ve been in higher education for 30 years, and senior leaders are more worried than I’ve ever seen them.” UK universities fear bankruptcy may come true if stringent measures are not taken, and senior leaders worry about them going into the red zone of fiscal deficits. 

The leaders also suggest that the UK universities in trouble may have to run a thorough check of what is required and what is not neccessary. The current scenario of the country’s education sector needs stringent measures. Cost cutting on ineffective investments, like limiting the courses offered and thus limiting the staff, might work alongside other measures.

One prominent reason is the probable decline in Nigerian students in the UK due to reduced applications this year. The decline is predicted to be a whopping 71 per cent in the number of Nigerian students in the UK as compared to previous years. The Indian students also seem to have shunned the British universities for the upcoming academic year. Both countries are among the top host countries for the UK’s global education stage. UK universities are highly dependent on the international student ecosystem, which benefits the universities more than the EU students post-Brexit. UK universities fear bankruptcy because of the plummeting interests of Indian students and Nigerian students in the UK. 

The reduction in the number of students aspiring to study in the UK is connected with various factors. The declining applications by Nigerian students in the UK seem to be a direct impact of the ongoing economic crisis in Nigeria. According to Bloomberg’s report, the Naira saw of dip of 1.8% and closed at 1,605 US$. The Naira is currently showing trends of being the second weakest currency in the world. 

Another reason is the new immigration policies in the UK related to the UK-dependent visa new rules. According to the revised UK dependent visa norms, international students can no longer bring in dependents. The majority of dependents come to the UK with Nigerian and Indian students enrolled in the universities. The UK-dependent visa new rules have resulted in plunging interest, according to experts.

Amidst all the reasoning and universities mediating on tactical solutions to the financial crisis visible on the horizon, the University of York has reported a £24 million fiscal deficit alongside a drop of 16% in overseas applications, as per the Financial Times and BBC news. Reports from the University of Lincoln concern the 20% cost-cutting the university is planning to compensate for the transpiring losses. 

More than 15 universities in the UK have already taken steps to reduce the cost of skimming staff and courses. Universities like Sheffield Hallam University recently sent ‘risk of redundancy’ letters to 120 staff members. The University of Kent is also in the process of firing 58 staff members and reducing 9 courses that are not serving well. 

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