New levy targets $594m in first year as universities face additional costs
Universities in England will be required to pay an annual levy of £925 (approximately $1,200) for each international student above an exemption threshold from August 2028, a policy that could increase financial pressure on institutions enrolling students from Nigeria and other major overseas markets.
The measure, first announced in the UK government’s 2025 budget, was reaffirmed by Education Minister Josh MacAlister, who said the revenue generated would be used to support England’s higher education and skills system.
According to the Department for Education, the levy will apply to both new and existing international students.
MacAlister said the government had conducted consultations and published an impact assessment in 2025, with an updated analysis expected to be released shortly.
He also argued that a planned increase in domestic tuition fee caps could generate approximately £6 billion for higher education providers over five years, compared with the levy’s projected cost of less than £1 billion.
Universities to Pay £925 Per Student Above Exemption Threshold
Under the proposed policy, universities will pay £925 annually for every international student beyond the first 220 overseas enrolments, which will be exempt from the charge.
The Office for Students will oversee implementation using student enrolment data.
The government projects that the levy will generate £445 million in the 2028–2029 financial year, equivalent to approximately $594 million, with revenue expected to rise to £480 million, or about $641 million, by 2030–2031.
The additional financial obligation could prompt some universities to review their international recruitment strategies, particularly those that depend heavily on overseas tuition fees.
Nigeria Among the Largest Sources of UK International Students
Nigeria remains one of the major sources of international students in the United Kingdom, alongside China, India, Pakistan and Bangladesh.
Home Office figures showed that Nigeria recorded 26,060 sponsored study visas in the year ending June 2026, ranking behind China, with 86,368, and India, with 82,523.
Pakistan recorded 19,600 sponsored study visas, while Bangladesh accounted for approximately 8,800.
For Nigerian students hoping to study in the UK, the levy raises concerns about the possibility of further tuition fee increases as universities adjust to the additional costs.
However, the levy is imposed on universities rather than directly on individual students. Whether institutions pass some or all of the cost on to students will depend on their financial and pricing decisions.
Nigerian Students Contribute Billions to UK Education
The Department for Education estimated that Nigerian students generated £1.7 billion in UK higher education export revenue in 2024.
India contributed £5.3 billion, while China accounted for £4.9 billion. International students collectively generated an estimated £23.9 billion for the UK economy.
The figures highlight the economic importance of overseas students to British universities and the wider education sector.
Despite their contribution, some institutions have already introduced or announced tuition fee increases for international students.
Birmingham City University raised fees for continuing international students by two per cent for the 2026–2027 academic year and plans a further 3.5 per cent increase for 2027–2028.
The University of Bath has also advised overseas students who began their studies in 2026 to budget for annual fee increases of up to eight per cent.
Universities Tighten International Recruitment
The proposed levy comes amid wider changes to the UK’s international student recruitment environment.
Some British universities have withdrawn admission offers to applicants f
