Two profound problems face the higher education sector globally — affordability and relevance. Whether you live in Africa, Europe or the U.S., a major reason why people don’t go to university or college or even drop out is because they cannot afford tuition fees. On the other hand, relevance shows the huge gap between what traditional universities teach and what global employers actually look for. It’s not a secret that universities focus a bit too much on theory.
“That way, you get the best of both worlds,” CEO Al Tarzi said in a recent interview. “You get practical skills that you can put to work immediately or for your future career while actively keeping a job. So the whole experience is designed as a learning as a service model.”
Nexford’s tuition structure is very different from traditional universities because it’s modeled monthly. Its accredited degrees cost between $3,000 to $4,000 paid in monthly installments. In Nigeria, for instance, an MBA costs about $160 a month, while a bachelor degree costs $80 a month. But the catch for the monthly installment structure means the faster a learner graduates, the less they pay.
Nexford University doesn’t offer standardized and theoretical tests or assignments as most traditional universities do. Al Tarzi says the company employs what he calls a competency-based education model where students prove mastery by working on practical projects.
For instance, a student working on an accounting course will most likely need to create a P&L statement, analyze balance sheets and identify where the error is to correct it. The platform then gives the student different scenarios showing companies with different revenues and expense levels. The task? To analyse and extract certain ratios to help make sense of which company is profitable and the other unit economics involved.
Though Nexford plays in the edtech space, Al Tarzi doesn’t think the company is an edtech company. As a licensed and accredited online university, Nexford has a huge amount of automation across the organization and provides students with support from faculty and career advisors.
After offering degrees, Nexford puts on its placement hats by fixing its graduates with partner employers.
One of the major gains of this learning experience is how it prepares people for remote jobs. Nexford is bullish on its virtual skills grid, where people will get jobs remotely regardless of their location on the platform.
“Across Sub-Saharan Africa by the year 2026, there’s gonna be a shortage of about 100 million university seats as a result of huge growth in youth population not met by growth and supply. Even if you want to build universities fast, you wouldn’t be able to meet the demand. And that spirals down to the job market. We don’t think the local economy will produce enough jobs in Nigeria, for instance. But we want to enable people to get remote jobs across the world and not necessarily have to migrate.”
Merging both worlds of tech and the traditional university model is no easy feat. The former is about efficiency, user-centricity and product, among others. The latter embodies rigidity and continues to lag behind fast-paced innovation. While there’s been a boom in edtech, most startups try to circumvent the industry’s bureaucracy by launching an app or a MOOC. Nexford’s model of running a degree-granting, licensed, accredited and regulated university is more challenging but in it lies so much opportunity.