For the average Nigerian, all they want to live is a soft life.
However, many obstacles, such as high foreign exchange, unemployment and taxation rates, are blocking them from becoming part of the ‘millionaire gang’. And the 2023 Africa Wealth Report by Henley and Partners confirms this.
Below are a few noteworthy points from the report that we should care about:
Nigeria is Africa’s third-largest market — with fewer millionaires
According to the report, South Africa, Egypt, Nigeria, Kenya and Morocco make up Africa’s “Big 5” wealth markets, accounting for 56% of the continent’s high-net-worth individuals (millionaires) —this is measured in dollars and not local currency).
But despite this, Nigeria seems to be churning out fewer millionaires. Nigeria only has 9,800 millionaires, and 30% have lost their status over a decade (2012-2023).
According to economists, this drop can be attributed to the depreciation of the naira against the dollar and poor foreign exchange policies in Nigeria.
‘Top 10 Wealthiest Countries’, Africa Wealth Report [Henley & Partners]
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Nigeria contributed to a 12% drop in Africa’s total millionaires
‘Growth Trends On the Continent’, Africa Wealth Report [Henley & Partners]
The report claims that the total high net worth individual numbers in Africa have fallen 12% over the past decade (2012 to 2022). The cause? Poor growth in the three largest African markets, South Africa, Egypt — and Nigeria.
Lagos has been listed as Africa’s 4th wealthiest city – with 5400 millionaires
‘Africa’s Wealthiest Cities’, Africa Wealth Report [Henley & Partners]
As the “economic hub” of West Africa, Lagos houses over half of Nigeria’s high net-worth individuals. These include 5,400 millionaires, 16 centi-millionaires, and three billionaires.
It also listed major sectors in Lagos, including raw materials, oil and gas, transport and financial services.
Lagos and the new Blue Rail transport system [The Guardian]
What does this mean for the average Nigerian?
As the rich are reducing and economies suffer, here’s how it affects you as a resident.
There will be lesser job opportunities for the poor
According to the Corporate Affairs Commission (CAC), 3.1 million registered companies have millionaires as their owners. These can easily translate to 3.1 million companies where you can find work instead of a government institution.
If 30% of these millionaires lose status due to economic hardship, companies could take austerity measures by reducing the workforce or folding up and decreasing job opportunities.
Reduction of foreign direct investment
According to a report on “The Determinants of Foreign Direct Investment in Nigeria”, the most common route for foreign direct investment is partnerships with private companies. Of course, millionaires own these companies.
If you haven’t already guessed by now, fewer millionaires mean lesser foreign investment in Nigeria’s economy
Sapa increases
Let’s end this report with the most obvious point — the activities and investments of millionaires help economic growth and reduce poverty. If fewer millionaires exist, the well-being of Nigerians cannot survive purely on the government. And you know what that means.
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