When is an MBA worth it?

After five years working for a multinational company as an assistant customer care manager, one morning at work, Oluwatoby scratched her head and thought getting a Master’s of Business Administration (MBA) could enhance her professional career opportunities, command more in compensation and secure job promotions.

An MBA can furnish the skills and knowledge required to float a new business and a rising number of employers request an MBA for some management or leadership positions.

However, for Oluwatoby her next line of thought bordered on how to fund her MBA project. A two-year full-time MBA from a top business school (Stanford Graduate School of Business or Harvard Business School) costs an average of $120,000 (N37, 680, 000). In Nigeria an MBA at the Lagos Business School (LBS) costs N4, 257, 000.  This is both a substantial expense for her and substantial time out of the workforce. She paused to ask herself; is earning an MBA worth the cost? There is no straightforward answer to this question, she rightly thought.

The MBA curriculum comprises a versatile spectrum of business-related topics including: accounting, statistics, economics, communications, management and entrepreneurship. MBA programmes ready students to work for financial institutions such as banks but also prepare them for management positions in other fields or as founders of start-up companies.

An MBA in Nigeria would provide students with a robust foundation in core business principles. It is designed for ambitious students and those seeking a career in management.

“I have enrolled for an MBA programme for a number of reasons.

For starters I want to acquire the business skill sets it promises and speed up my professional career progression. In addition I enrolled for the networking opportunities it provides. Your net worth is directly proportional to your network of friends and acquaintances. In Nigeria the Lagos Business School (LBS) offers access to an elite network of alumni” said Stephanie Erigha, a first year MBA student at the Lagos Business School, Lagos.

Two different routes lead to an MBA: a full-time or a part-time programme. Both programmes will result in an MBA but there are trade-offs to consider. A full-time student will find it difficult to work for the duration of their two or three years at school.

These programmes are most popular, therefore, with younger students who have recently earned their bachelor’s degree and can afford to study full time on campus.

The other route, part-time MBA programmes typically come in two flavours. The Executive MBA (EMBA) is designed for students who have been in the workforce for some time in executive or leadership roles and who are typically 32-42 years of age.

These programs can be very expensive, and students expect that their employer will pick up the tab. The part-time MBA is meant for employees who work full time, but are not yet in leadership positions. These students tend to be 24-35 years old and take classes after work, in the evenings or on weekends in order to enhance their career.

“What an MBA does for students who earn it is enormous. It helps them clarify their purpose and sharpen their focus. It equips them with invaluable skill sets that are sought after by employers, wannabe and seasoned entrepreneurs” said Olugbenro Oyekan, associate professor of practice in management and Dean of School at the International School of Management (ISM), Lagos.

According to Investopedia, an online investor’s education platform, “an MBA is only worth the expense, time and effort when the graduate plans to work in a business-related field, in management, or as a company founder. For those working in other industries, unless they are in management or leadership roles, an MBA may not be useful” it wrote.

STEPHEN ONYEKWELU