FG slashes monthly stipend for stranded BEA scholars by 56%

The Federal Scholarship Board (FSB) has slashed the monthly supplementation allowance for beneficiaries of its Bilateral Education Agreement (BEA) with foreign countries by 56 percent.

Nigeria has a bilateral education agreement/student exchange scheme with countries in Africa, Europe, North America, and Asia.

Among the countries that have been operating this agreement are Russia, China, Hungary, Morocco, Venezuela, and Algeria.

The government in these countries give annual scholarship slots to FSB, which then proceeds to nominate indigenous applicants by merit.

The host country undertakes to cover tuition and provide housing for the scholars while Nigeria pays the awardees a yearly allowance of $200 for health insurance, $500 annually for medicals, and $500 in monthly stipend for nutrition, books, equipment, and transport.

TheCable earlier reported how Nigeria defaulted in paying the $500 stipend for 12 months, leaving young students stranded abroad.

The house of assembly, in response, summoned the education minister in a probe but the stipend remains unpaid as of this writing.

In a letter dated July 23 as seen by TheCable, the FSB announced a 56 percent cut in the monthly allowance for the BEA students.

The letter signed by Astra Ndajiwo, the director of the board, FSB said the students will now get $220 in monthly stipend instead of $500.

Nigeria had at least 1,532 active BEA beneficiaries in 2023 for which N6.8 billion was allocated in 2024 at an N800/USD FX benchmark.

The USD exchange rate has since risen to over N1,600, resulting in a shortfall that Nigeria’s federal government has yet to address.

Explaining the slashed allowances, the FSB said: “The prevailing situation concerning the domestic exchange rate in Nigeria makes it difficult to sustain the payment of BEA allowances as contained in the award letters issued at the point of departure.”

Ndajiwo added that the 2023 and 2024 stipends will be paid to the stranded scholars when made available by the federal government.

TheCable’s report showed how limited slots for student lodges in destination universities are forcing Nigerian beneficiaries of the BEA scheme to rent apartments in these foreign countries for rates between $200 to $300 a month that often deplete their $500 stipend.

Some squatted with foreign nationals while working menial jobs, seeking aid from non-profits, and begging for alms to make ends meet.