UK to impose $1,200 levy on universities for Nigerian, other foreign students

The United Kingdom is set to impose an annual levy of £925 (approximately $1,200) on universities for every international student enrolled from Nigeria and other countries, including India and China, beginning in August 2028.

The proposed levy, which will be paid by higher education institutions in England, is intended to fund maintenance grants for disadvantaged domestic students.

According to the latest UK Home Office statistics for the year ending June 2026, China, India and Nigeria were the three largest nationalities receiving sponsored study visas, accounting for approximately 54% of visas granted to main applicants.

According to reports the National Union of Students (NUS) and the Russell Group have raised concerns about the proposed funding arrangement.

The warning follows Home Office data showing that international student visa applications have declined by 22% over the past year and more than 30% compared with three years ago.

How the levy will be charged

The provision states:

• “The levy is charged for an academic year on a registered higher education provider in respect of the international students who are for any period during the year registered on a higher education course provided by the provider.”
• It further specifies that “the amount charged is £925 for each of those international students.”

The legislation also provides that students who enrolled in previous academic years will become eligible for the annual charge upon reaching the anniversary of their initial registration.

• This means universities could face recurring levy obligations for continuing international students, rather than paying only for newly admitted students.
• The government previously projected that the international student levy would generate £445 million in 2028/29, £465 million in 2029/30 and £480 million in 2030/31.

However, these estimates were based on assumptions of relatively stable international student recruitment.

Under the proposed arrangement, eligible students from households earning up to £30,000 annually would receive financial support throughout their undergraduate studies.

• Students would receive up to £1,000 annually during their first two years.
• The grant would reduce to £750 annually for subsequent years.
• Eligibility would focus on courses aligned with the government’s industrial strategy, including engineering and healthcare.

UK Tightens International Student Visa Rules

The funding concerns come amid increasingly restrictive immigration policies affecting international students.

Home Office figures indicate that sponsored student visa refusals increased from approximately 5,300 to 8,400 during the first half of 2026 compared with the corresponding period in 2025.

The government has also introduced several restrictions affecting overseas applicants.

• In June 2025, the government reduced the maximum permitted student visa refusal rate for university sponsors from 10% to 5%.
• Since January 2024, most international students have been prohibited from bringing dependants to the UK.
• In March 2026, student visa restrictions were introduced for nationals of Afghanistan, Cameroon, Myanmar and Sudan.

Universities have reportedly begun withdrawing admission offers from some international applicants to avoid exceeding the visa refusal threshold and potentially losing their sponsorship licences.

Nigerian Students Face UK Visa Challenges

The funding concerns come amid broader changes to the UK’s international education policies, which have affected overseas student recruitment and university finances.

• Nairametrics reported on October 11, 2026 that British universities were withdrawing admission offers to Nigerian students following a sharp increase in visa refusals. The proportion of UK study visa applications withdrawn by Nigerian applicants rose to 22.7% in the first half of 2026, compared with 4.5% during the corresponding period in 2025.
• In June 2026, Nairametrics reported that the UK government introduced stricter sponsorship requirements for universities recruiting international students. Institutions that fail to meet the new compliance standards risk restrictions on recruitment or losing their sponsorship licences.

Earlier in January 2026, the UK government dropped its target of attracting 600,000 international students annually, replacing it with a strategy to grow education exports to £40 billion by 2030.