FG Raises Private University Establishment Fee by 400%

The Federal Government has increased the processing fee for establishing private universities in Nigeria from ₦5 million to ₦25 million, representing a 400% hike.

The National Universities Commission (NUC), in a memo made public, stated that the decision aligns with efforts to reposition private universities to better serve national educational needs. The increase follows a directive from Tunji Alausa, the Minister of Education.

The processing fee is the amount payable to the NUC by individuals or organizations applying to establish a private university. It covers administrative expenses, evaluation procedures, and other regulatory requirements necessary for approval.

According to the memo, the increase is aimed at enhancing the coordination and regulation of Nigeria’s private university sub-sector. The NUC also announced a review of its guidelines to ensure private institutions can meet contemporary challenges in the education sector.

Additionally, the commission has suspended inactive applications, including those for private open universities that have made no significant progress in over two years. Applications still at the letter of intent stage will also be affected by this suspension.

Apart from the processing fee hike, the cost of purchasing application forms for establishing a private university has also been raised from ₦1 million to ₦5 million. The NUC directed applicants who have already obtained forms to pay the updated processing fee within 30 working days or risk forfeiting their applications.

As of February 2025, data from the NUC database shows that Nigeria has at least 149 active private universities, 63 federal universities, and 63 state universities.

While the government argues that the increase will help maintain higher educational standards, some stakeholders fear it may reduce competition, drive up tuition fees, and limit access to private universities, especially in regions where they serve as alternatives to overcrowded public institutions.