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Part of the guideHow to save in Nigeria when inflation is high
The short answer
Treat each term's fees as a bill with a due date: add up tuition and extras, divide by the months until the term starts, and move that amount into a separate pot every payday. Put money that is two or more months away into something that pays more and matures before the due date, such as a fixed deposit or Treasury bill, and keep the last month's money where you can reach it. Budget for increases too: many private schools raised fees by 30–40% for the 2026/27 session.
School fees are one of the largest and most predictable bills a Nigerian family faces, which makes them one of the easiest to plan for. The difficulty is size and timing: three large payments a year, each arriving on a fixed date, often with increases announced late. This article sets out a plan; our guide to saving in Nigeria when inflation is high covers the savings options in more depth.
What fees are doing in 2026
Schools reopened for the 2026/27 session on 14 September 2026. Vanguard's checks found most private schools had raised fees by 30–40%. One secondary school in Ipaja, Lagos, went from ₦86,000 to ₦124,000 a term; another in Egbeda from ₦250,000 to ₦320,000. Schools blamed higher running costs, fuel, teachers' pay and rent. Parents' associations asked schools to keep increases to 20%.
Exam costs are rising too. In July 2026 the Federal Government announced a harmonised WAEC and NECO fee of ₦50,000, up from ₦27,000, expected from the following year, though stakeholders have called for it to be suspended. If you have a child in SS2 or SS3, include it as a separate line.
Headline inflation was 14.63% in September 2026. School fees have been rising faster than that, so a plan based on last year's invoice will fall short.
Step 1: budget the full cost of each term
Tuition is only part of the bill. For each child, list:
- Tuition for the term.
- Development, PTA or other levies.
- Books and stationery, usually heaviest in the first term.
- Uniforms, shoes and bags.
- School bus or other transport for the term.
- Lunch or feeding, if billed separately.
- Exam, registration or excursion fees.
Then add a buffer for increases. If you do not yet know next session's fees, assume a rise at least as large as this year's, or 20–25% as a working figure, and correct it when the school publishes its fees.
Step 2: turn it into a monthly amount
Take a family with two children at a school charging ₦320,000 a term in tuition, plus about ₦60,000 a term each in extras. Each term costs ₦760,000, or ₦2,280,000 a year.
First term has just been paid. The next bill is second term, due in January. From mid-October that leaves about three paydays, so the monthly saving is about ₦253,000. From then on, with roughly four months between term start dates, the family needs about ₦190,000 a month per term. If next session's fees rise by 25%, each term will cost ₦950,000 and the monthly figure rises to about ₦237,500 from the third term onwards.
Step 3: match the money to the date
The rule: the money must be available on the due date, and only money you will not need before then should be locked.
| Time until fees are due | Where to keep it | Why |
|---|---|---|
| Under 1 month | Savings account or flexible pot | Must be reachable the day you pay |
| 1–3 months | Short fixed deposit or 91-day Treasury bill maturing before the due date | Higher rate, still on time |
| 3–12 months | Fixed deposit, 182- or 364-day Treasury bill, or a money-market fund | Best return for a known date |
| Over a year (next session, university) | Rolling Treasury bills, FGN Savings Bonds, money-market funds | Higher return, staggered maturities |
A worked example with a Treasury bill
Mid-October, the family wants ₦760,000 for mid-January. At the 7 October 2026 auction, the 91-day bill cleared at 15.50%. Buying ₦760,000 of face value costs about ₦730,631. At maturity, the discount of about ₦29,369 is taxed at 10% (₦2,937), so the family receives about ₦757,063, close to the full bill, from an outlay of ₦730,631. In practice, primary auctions have high minimums, so this route usually means a bank's secondary market, a fund or an app; our guide to buying Treasury bills explains the options.
If the date is close or might move, a fixed deposit is simpler, and a flexible pot is safest for the final month. Our comparison of fixed deposits and savings accounts explains the trade.
Planning further ahead
University, a move to a boarding school or study abroad are bills several years away. For those, start a separate long-term pot now and feed it with a smaller monthly amount. Rolling Treasury bills or FGN Savings Bonds suit naira costs: the October 2026 three-year savings bond paid 14.071% a year, exempt from withholding tax, with quarterly interest. For fees that will be charged in pounds or dollars, saving in that currency removes exchange-rate risk; our article on saving in dollars explains when that makes sense.
If fees are due before your savings are complete, talk to the school early. Many accept instalments within the term if agreed in advance, which is usually cheaper than borrowing at short notice. Ask what the instalment terms are, whether there is any surcharge, and get the arrangement in writing.
Step 4: protect the plan
- Keep the school-fees money in its own labelled account or pot, never mixed with spending money.
- Automate the transfer on payday so the saving happens before other spending.
- Keep your emergency fund separate, so a car repair does not take next term's fees. See how big it should be.
- Each term, compare the actual invoice with your budget and adjust the monthly amount for the next term.
- If you have irregular income, save a fixed share of each payment and aim to be a full term ahead.
Where Pryme fits
In Nigeria, Savings Boxes (Nigeria-only, in naira) give you pots inside your account, so school-fee money sits apart from spending money. A Fixed Box can be set to a date before the fees are due, and a Flexible Box suits money you may need sooner. The rate and terms of each are shown in the app before you commit, and rates can change. Eva can prepare the monthly transfer on payday, and nothing moves without your approval.
If you would rather spread a cost, Spaces credit is a Nigeria-only, Naira spending limit lent to you by Solid Allianze Microfinance Bank Ltd, a CBN-licensed microfinance bank, and usable only with merchants inside Pryme's Spaces ecosystem; Pryme Financial provides the technology. The limit is offered based on how the account is run, and nothing is drawn until you have read the agreement in full and accepted it. Credit decisions draw on Nigeria's licensed credit bureaus, so repaying on time helps build a credit history. Check in the app whether your school participates, and see the Spaces credit guide. Saving ahead avoids borrowing costs altogether. For other savings options, see the main savings guide.
Questions people ask
How do I save for my child's school fees in Nigeria?
Add up each term's full cost, divide by the months until it is due and save that amount every payday in a separate pot. Put money not needed for two or more months into a fixed deposit or Treasury bill that matures before the due date.
How much have school fees increased in 2026?
Vanguard found that most private schools raised fees by 30–40% for the 2026/27 session, which began on 14 September 2026. Increases vary widely by school.
Is it better to pay school fees for the whole year at once?
Only if the school offers a discount larger than what the money would earn in a fixed deposit or Treasury bill over the year, and only if paying early does not leave you without an emergency fund.
What is the best savings plan for school fees?
A combination: fixed deposits or Treasury bills timed to mature before each term, with a flexible pot for the final month. Automate monthly transfers so the money builds without relying on willpower.
How much are WAEC and NECO fees?
The Federal Government announced a harmonised WAEC and NECO fee of ₦50,000, up from ₦27,000, expected from 2027. Stakeholders have called for it to be suspended, so check the final figure before you budget.
Sources
- AllAfrica (Vanguard): parents lament as school fees go up 40%, September 2026 · accessed Oct 2026
- TechEconomy: N50,000 WAEC/NECO fee sparks outrage · accessed Oct 2026
- NBS CPI, September 2026: inflation slows to 14.63% (Nairametrics) · accessed Oct 2026
- Nairametrics: NTB auction of 7 October 2026, 364-day stop rate 15.85% · accessed Oct 2026
- Templars Transcripts (Tax), October 2025: FIRS public notice on WHT on short-term securities · accessed Oct 2026
- Nairametrics: FGN Savings Bond October 2026 offer · accessed Oct 2026
- NairaCompare: fixed deposit rates in Nigeria (July 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.