Private Cost Insights: Findings from Nigerian Universities

When families consider higher education in Nigeria, the first question is often about cost. While tuition figures get the most attention, the real financial burden extends far beyond what appears on an official fee schedule. A landmark study comparing students at the University of Lagos (UNILAG) and the National Open University of Nigeria (NOUN) reveals just how much learners personally invest in their education-and why distance learning consistently comes out ahead in affordability.

Understanding private costs in higher education 🔗

Private costs refer to all expenses borne directly by students and their families to access and participate in higher education. These go well beyond tuition and include registration fees, transportation, accommodation, textbooks, internet access, telephone expenses, and even the cost of acquiring a university prospectus. Research published in the European Journal of Open, Distance and E-Learning by Felix Olakulehin and Santosh Panda examined these private expenditures among 200 students enrolled in B.Sc. Computer Science and B.A. English Studies at both institutions. Their findings offer concrete evidence that distance education significantly reduces the personal financial outlay required to earn a degree.

The study divided costs into two phases: pre-entry expenditures (everything spent before classes begin) and entry-stage costs (ongoing expenses while studying). By analyzing both categories, the researchers painted a complete picture of what students actually pay-not just what institutions charge.

Key cost comparisons between UNILAG and NOUN 🔗

The data revealed striking differences between the two modes of education. At the pre-entry stage, UNILAG students spent an average of ₦48,650, while NOUN students spent only ₦25,000-nearly half the amount. This gap widened further when examining ongoing study-related expenses, where UNILAG students averaged ₦107,000 compared to ₦76,500 for NOUN students.

Registration and caution deposits 🔗

Registration fees at UNILAG accounted for 31% of pre-entry costs, whereas at NOUN this figure was 20%. Caution deposits showed an even more dramatic difference, with conventional university students paying ₦20,000 compared to ₦7,500 for distance learners. These initial fees create an immediate barrier for families with limited resources, making distance education more accessible from the outset.

Books and learning materials 🔗

Purchasing additional textbooks represented one of the largest single expenses for both groups. UNILAG students spent approximately ₦25,000 on supplementary reading materials, while NOUN students spent ₦10,000. This difference reflects the nature of distance education, where course materials are often integrated into programme fees or available through institutional resources.

Examination and practical session fees 🔗

Examination costs at the conventional university totaled ₦20,000, whereas distance learners paid ₦12,000. Similarly, expenses for practical sessions stood at ₦15,000 for UNILAG students versus ₦10,000 at NOUN. While both institutions require laboratory work for science programmes, the distance learning model appears to structure these components more economically.

Hidden expenses: transport, accommodation, and communication 🔗

Perhaps the most significant savings in distance education come from expenses that barely register on official fee schedules. NOUN’s open and distance learning model allows students to study from anywhere without relocating or commuting daily to campus. With over 105 study centres nationwide, learners can access support closer to home rather than moving to Lagos or another major city.

Accommodation savings 🔗

The study revealed that 82% of UNILAG students lived in university hostels or private accommodation, while 92% of NOUN students remained with their families. This single factor eliminates what is often the largest recurring expense in conventional university education. Room and board costs in Lagos can consume a substantial portion of a family’s education budget, making campus-based study financially impossible for many.

Transportation costs 🔗

While UNILAG students spent ₦3,500 on pre-entry transportation and ₦2,000 during studies, NOUN students spent ₦3,000 and ₦5,000 respectively. The higher entry-stage transport costs for distance learners reflect periodic visits to study centres for tutorials and examinations, but these occasional trips remain far cheaper than daily commuting or residential relocation.

Communication expenses 🔗

Interestingly, NOUN students did spend more on communication-20% of their pre-entry costs went to internet and telephone expenses compared to 10% for UNILAG students. This highlights that distance education shifts rather than eliminates costs, trading accommodation and transport for connectivity expenses. However, the overall financial burden still favours the distance learning approach.

Student demographics reveal different audiences 🔗

The research uncovered meaningful differences between the two student populations. At UNILAG, 73% of students were aged 21-30, while NOUN served a more diverse age range with 45% in that bracket and another 41% aged 31-40. Some 14% of NOUN students were over 40, reflecting the flexibility that distance education provides for working adults and mature learners seeking to advance their qualifications.

Employment status also differed markedly. While 85% of UNILAG students identified as full-time students, only 34% of NOUN learners did so. At the open university, 42% were employed, and another 13% were self-employed-people who could not have pursued conventional education without abandoning their livelihoods.

Policy implications for Nigeria’s education sector 🔗

These findings carry significant weight for educational planning in Nigeria, where access to quality higher education remains a pressing challenge. The study found that by the end of their first year, UNILAG students had spent approximately ₦156,000 in private costs, while NOUN students spent about ₦101,000-a difference of ₦55,000 or roughly 35% less.

Expanding scholarship reach 🔗

For scholarship agencies and government bursary programmes, these numbers suggest that funding the same amount could support significantly more students through distance education. A scholarship covering one conventional university student’s private costs could potentially support multiple distance learners, extending educational opportunities to families currently priced out of higher education.

Addressing the access gap 🔗

Nigeria’s conventional universities admit only about 15% of qualified applicants each year. Distance education offers a scalable solution. Research from other countries shows that open universities in India, Iran, and Pakistan achieve cost per student figures between 10-60% of conventional institutions. Nigeria’s investment in NOUN reflects this global trend toward more economically sustainable models of mass higher education.

Supporting non-traditional learners 🔗

The demographic data underscores that distance education serves populations largely excluded from conventional systems: working professionals, parents with family responsibilities, and older adults seeking career advancement. Policies that strengthen distance learning infrastructure therefore address educational equity as much as efficiency.

The broader value proposition 🔗

Beyond raw cost comparisons, the study highlights qualitative benefits of flexible learning. Distance education students can self-pace their studies, registering only for courses they can afford at any given time. This removes the pressure of raising full-year fees upfront and allows learners to progress according to their financial circumstances without losing their student status.

The opportunity to continue working while studying also changes the economic equation. Rather than foregoing income for four years, distance learners maintain their earning capacity throughout their studies. While the research did not calculate opportunity costs due to ongoing academic debate about their measurement, this factor clearly benefits working adult learners who cannot afford to leave employment.

Distance education in Nigeria continues expanding, with NOUN maintaining affordable fee structures and the National Universities Commission fully accrediting its programmes. Graduates now qualify for the National Youth Service Corps and professional licensing, addressing earlier concerns about credential recognition.

What do you think? How might families in your community benefit from clearer information about the true private costs of different educational pathways? And what role should governments play in ensuring that financial barriers don’t determine who gets access to higher education?

References

1. https://files.eric.ed.gov/fulltext/EJ954910.pdf
2. https://nounupdate.com/about-noun.php
3. https://phys.org/news/2025-11-distance.html
4. https://developmentevidence.3ieimpact.org/search-result-details/systematic-review-repository/how-effective-are-different-approaches-to-higher-education-provision-in-increasing-access-quality-and-completion-for-students-in-developing-countries-does-this-differ-by-gender-of-students-/9234
5. https://files.eric.ed.gov/fulltext/ED494830.pdf
6. https://www.legit.ng/1164521-national-open-university-nigeria-courses-fees.html