In a major boost to its internally generated revenue, the Federal Government of Nigeria has raked in a total of N300 million from the establishment of 50 private universities between 2023 and May 2025.
This revenue was generated through the National Universities Commission (NUC), the regulatory agency overseeing the establishment and accreditation of universities in Nigeria. According to an analysis of official fee structures, each private university was charged N1 million for the application form and N6 million for the application processing — totaling N7 million per institution. Multiplied by 50, the total revenue stood at N300 million during the review period.
The development reflects a growing interest in private tertiary education across Nigeria, as stakeholders continue to fill the gap left by overstretched public universities. However, the NUC has recently implemented a significant hike in its licensing fees, raising the application form cost to N5 million and the processing fee to N25 million, making a total of N30 million per institution.
The new rate marks over a 328% increase from the previous N7 million, raising questions about accessibility and equity in higher education investment.
A source within the commission who spoke on condition of anonymity noted that the revised fees are meant to ensure only serious and financially capable applicants pursue licenses, thereby improving educational standards and sustainability.
“We want to ensure that only institutions with the capacity to meet quality benchmarks apply. It’s not just about quantity, but quality,” the source said.
Despite the revenue surge, the NUC has also announced a temporary suspension of new applications, a move believed to allow the Commission to review and monitor the standards of the newly established universities, and to realign with current policy objectives under the Federal Ministry of Education.
The fee increment has sparked mixed reactions from education stakeholders and investors in the higher education sector. While some view it as a deterrent to private sector participation, others believe it may help sanitize the application process and discourage “mushroom” institutions with no adequate structure or long-term vision.
Speaking on the development, Dr. Isaac Oladele, an education economist, said the move is both a revenue strategy and a quality control measure.
“We need well-funded, well-structured universities that can complement public ones. If this new fee regime helps achieve that, then it’s a positive step. But government must also ensure that the funds are reinvested to strengthen regulatory oversight,” he noted.
Meanwhile, the hike comes amid ongoing reforms in Nigeria’s tertiary education system, including recent policy decisions such as the extension of Pharmacy, Physiotherapy, and Optometry programs to six years, and new curriculum standards for professional disciplines.
Nigeria currently has over 111 approved private universities, with more than 60 licensed in the last decade alone — a testament to the increasing demand for tertiary education and dwindling capacity in public institutions.
As the country’s youth population continues to rise, and public universities grapple with strikes and underfunding, many families are turning to private institutions for stability and quality learning environments.
With the fee hike in place and new applications on hold, observers will be keen to see how the Federal Government manages the transition and balances revenue goals with the broader need for access and inclusion in higher education.
Industry watchers also call on the NUC to increase transparency in its approval process and ensure that universities granted licenses are held to strict academic and infrastructural standards.
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