“N11m Proof of Funds:” Nigerians traveling to UK, Canada, Others To Pay More With Current FX Rates
- The recent adjustment in foreign exchange rate by the CBN has increased the cost of travel for most Nigerians
- At the current FX rate, Nigerians wishing to travel to the United Kingdom and Canada would need to have fat bank accounts
- The naira float by the CBN has worsened the plight of Nigerians who wish to travel overseas
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On June 14, 2023, the Central Bank of Nigeria (CBN) announced exchange rate unification, allowing banks to fix their rates as Nigeria embarked on economic reforms.
The announcement by the CBN in June worsened the problem of the naira, causing it to spike upward immediately.
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CBN's FX policy deepens travelers' woes
After the announcement, banks started selling a dollar at N650, more than 50 per cent addition.
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A month later, the same dollar sold for N900 in the official Importers and Exporters (I&E) windows and about N1,000 on the streets.
The development caused all the elements in foreign travel, ranging from airfare, visa processing fees, Proof of Funds, Basic Travel Allowance, IELTS exams for student visas, and school fees to double.
Foreign air travel is priced in the United States dollar. A weak Naira means higher travel costs.
According to a recent report on travel abroad, travel agents and companies reveal how much it will cost for a person in Nigeria to travel overseas on the new FX regime.
Air Ticket
Before the CBN announced the market unification, a return ticket to the UK cost between N600,000 and N650,000 in economy class on Qatar Airways. Now, it is over one million naira. On British Airways, it is more than N4 million.
Visa processing fee
The visa processing fee for the UK will cost a traveler to that country $500. Going by the exchange rate at the time of writing, dollar exchanges for approximately N1000. This means travelers in Nigeria will require N500,000 for visa processing.
Proof of funds
Proof of funds is the financial evidence from a prospective traveler’s bank account or sponsor, which they are expected to show during visa processing.
At least £9,207 will be required as proof of funds for Nigerians wishing to travel to the UK on a student visa.
As of the time of writing this report, a pound at the street market is about N1,200. So, a traveler on a student visa will have to show evidence of at least N11 million in their bank account.
IELTS Exam
One of the requirements for travel to the UK on a student visa is taking the International English Language Testing System (IELTS) exams.
The exam is an international standardized English language proficiency test for non-native English speakers. It will cost an applicant N107,500 to take the exams.
School fees
Most Nigerian travelers to the UK on student visas usually go for postgraduates, which may last between one and two years to complete full-time and between three and four years for part-time.
The fees are usually paid in batches. But the average school fees for International students, including Nigerians in UK universities, is between £16,000 to £24,000 per year, translating to between N19 million and N29 million per year.
A recent report by Legit.ng showed that the categories of Nigerians who can cough massive amounts for air travel are politicians, CEOs of big companies, and other top cruts of society.
Countries like Canada and the United Kingdom have made significant changes to their immigration laws, requiring that visitors meet stringent conditions.
US government opens visa lottery application, 2 options for Nigerians to qualify
Legit.ng reported that the United States has opened applications for its 2025 Diversity Visa Programme, popularly known as the visa lottery.
In a statement published on its website and obtained by Legit.ng, the U.S. department said the application will close on Tuesday, November 7, 2023.
While nationals from 53 African countries are qualified to apply, Nigerians are once again barred.
Source: Legit.ng
