FG reduces monthly allowance by 56% for Nigerian scholars abroad

The Federal Scholarship Board (FSB) has announced a significant reduction in the monthly supplementation allowance for beneficiaries of its Bilateral Education Agreement (BEA) with foreign countries, cutting it by 56 percent.

Nigeria’s BEA scheme, a student exchange programmr, includes partnerships with various countries in Africa, Europe, North America, and Asia.

Notable countries involved in this agreement include Russia, China, Hungary, Morocco, Venezuela, and Algeria.

These host countries typically provide annual scholarship slots to the FSB, which then nominates eligible Nigerian students based on merit.

While the host countries cover tuition and housing, Nigeria contributes a yearly allowance of $200 for health insurance, $500 for medical expenses, and a monthly stipend of $500 for nutrition, books, equipment, and transport.

Recently, Nigeria defaulted on paying the $500 monthly stipend for a full year, leaving many students stranded abroad. This issue prompted the National of Assembly to summon the Education Minister for an inquiry, but the stipends remain unpaid as of now.

In a letter dated July 23, the FSB announced a reduction of the monthly allowance for BEA students to $220, down from $500. This letter was signed by Astra Ndajiwo, the director of the board.

In 2023, there were at least 1,532 active BEA beneficiaries, and N6.8 billion was allocated for these scholarships in 2024, based on an exchange rate of N800/USD. However, the exchange rate has since risen to over N1,600, creating a financial shortfall that the federal government has yet to address.

The FSB explained that the reduction was necessary due to the unfavorable domestic exchange rate, which has made it challenging to maintain the original stipend amounts as specified in the award letters given to students.

“The prevailing situation concerning the domestic exchange rate in Nigeria makes it difficult to sustain the payment of BEA allowances as contained in the award letters issued at the point of departure,” the FSB said.

Ndajiwo assured that the stipends for 2023 and 2024 would be paid once the funds are made available by the federal government.

According to a report by The Cable, the additional challenges faced by Nigerian BEA students, include limited student lodging options at destination universities.

Many students are forced to rent apartments for $200 to $300 per month, significantly depleting their stipends. Some resort to squatting with foreign nationals, working menial jobs, seeking aid from non-profits, or even begging for alms to survive.