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The short answer
Estimate today's yearly cost of the kind of university you have in mind, including accommodation and living costs, then grow it by an assumed yearly price rise to the year your child starts. Save towards the first year by entry and keep saving through the course, using locked pots that mature in time for each payment.
Why university needs its own plan
School fees are a term-by-term problem; our guide to saving for school fees covers that. University is different. It is a multi-year cost that starts years from now, and the total includes much more than tuition. Because the start date is far away, inflation matters more than for any other family goal. NBS figures put headline inflation at 14.63% in September 2026; over several years, even moderate yearly rises can double the cost.
Step 1: decide what you are saving for
Families face very different costs depending on the route. You do not need to choose a university yet, but you do need a working assumption.
| Route | Main cost lines |
|---|---|
| Federal or state university | Charges, acceptance and registration, accommodation, books, feeding, transport, laptop |
| Private university in Nigeria | Tuition, accommodation, feeding, books, laptop, transport |
| University abroad | Tuition in foreign currency, visa and travel, accommodation, living costs set by the destination |
Ask the universities you are considering, or parents with children there now, for a realistic yearly total. Then plan with the higher estimate, not the lower one.
Step 2: project the cost forward
Grow today's yearly cost by an assumed yearly increase for each year until your child starts, and for each year of the course.
Worked example
An example family whose child starts university in five years. Today's yearly cost is assumed at ₦2,000,000, and costs are assumed to rise by 15% a year. Both figures are illustrations.
| Year of course (example) | Projected yearly cost |
|---|---|
| Year 1 (5 years from now) | about ₦4,020,000 |
| Year 2 | about ₦4,630,000 |
| Year 3 | about ₦5,320,000 |
| Year 4 | about ₦6,120,000 |
| Total for a four-year course | about ₦20,090,000 |
To have year one ready on entry, the family needs about ₦67,000 a month for the next 60 months. To fund all four years by saving steadily for the eight years until the final year's costs fall due, about ₦209,000 a month is needed, before any interest. The numbers are large, which is why starting early and planning in stages matter. If they look out of reach, change the assumptions rather than giving up: a lower-cost route, a smaller share funded by savings, or help from relatives.
Step 3: save in stages
- Start a university pot now, even with a small amount. The habit matters more than the size at first.
- Aim to have the first year's cost saved by the time your child starts.
- Use locked pots that mature shortly before each payment is due, so money is ready but not sitting idle for years in a spending account.
- Keep saving through the course for later years, and adjust for actual fees once your child has an admission.
- Review the plan every year using real fee figures, not old assumptions.
For very long horizons, consider keeping part of the fund in options that can earn more than a basic savings account, such as treasury bills or money market funds, while keeping money needed in the next year in safer, reachable savings. See how to buy treasury bills.
Sharing the load
Many families do not fund university from one parent's salary alone. Grandparents, uncles and aunts, and relatives abroad often want to contribute, especially at milestones such as birthdays or the end of secondary school. Make it easy by keeping one named university pot and telling relatives it exists. Gifts that go into a general account tend to be spent; gifts that go into a named pot tend to stay. Children can contribute too, from holiday jobs or gifts, which also teaches them what their education costs.
Scholarships and bursaries can reduce the bill, but they are uncertain. Apply for them, and treat any award as a bonus that lets you redirect savings to later years, rather than building the plan around it.
Common mistakes
- Planning for tuition only and forgetting accommodation, feeding and books, which can match or exceed tuition.
- Using the university fund for other emergencies. Keep a separate emergency fund; see where to keep it.
- Saving in naira for a foreign-currency goal without planning for the exchange rate. If study abroad is likely, read how to save for relocating abroad.
- Stopping saving once the first year is paid, then finding years two to four unfunded.
- Leaving large sums in one institution without knowing the deposit insurance limit. The NDIC raised its cover in 2024 to ₦2 million per depositor at microfinance banks and ₦5 million at commercial banks.
Where Pryme fits
You can hold a university fund in naira Savings Boxes in the Pryme app, using Fixed Boxes timed to mature before each payment and a Flexible Box for costs that come up at short notice, such as acceptance fees. Rates are shown in the app before you commit. If your child studies abroad, the same Personal Account holds GBP, USD and EUR, and Swap converts when you choose, with the rate shown first and the fee on its own line.
Questions people ask
How much should I save for my child's university education in Nigeria?
Estimate today's yearly cost including accommodation and feeding, grow it by an assumed yearly increase to the start year, and plan for every year of the course.
When should I start saving for university?
As early as possible. Five or more years of saving lowers the monthly amount and gives you time to adjust as fees change.
Is it better to save for university in naira or dollars?
Save in the currency of the cost. If your child will study abroad, plan for the exchange rate and convert in stages.
What costs are included in university fees in Nigeria?
Tuition or charges, acceptance and registration, accommodation, feeding, books, transport and a laptop. Ask universities for a realistic yearly total.
Sources
- NBS September 2026 CPI: inflation drops to 14.63% (Technext report) · accessed Oct 2026
- NDIC increases deposit insurance coverage levels (Arise News) · 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.