Nigeria is set to lose 300 high-net-worth individuals (HNWIs) in 2024 due to worsening economic conditions and insecurity, according to the Henley Private Wealth Migration Report 2024. The report highlights Nigeria’s economic challenges, including high crime rates, currency weakness, and religious tensions, as key factors driving this exodus.
The report indicates a 45% decline in the number of HNWIs living in Nigeria over the past decade. This makes Nigeria the worst-performing market in Africa during this period. Many of Nigeria’s millionaires are considering relocating to countries that offer better business environments, political stability, and luxury lifestyles. Popular destinations include the UAE, the UK, South Africa, and several European countries.
The report states, “Besides China, the UK, India, South Korea, and Russia, the remaining places in the Top 10 millionaire outflow ranking are taken up by Brazil, South Africa, Taiwan, and Vietnam. Each of these countries, including Nigeria, is set to see 300 millionaires leave this year.”
Dr. White, an analyst contributing to the report, noted that HNWIs from different countries are leaving for various reasons. “China and India are seeing high net outflows due to the success of their sizable economies in generating new millionaires,” he said. “In contrast, millionaires from developing nations like Brazil, Vietnam, South Africa, and Nigeria often leave in search of a better lifestyle, safer environments, and access to premium health and education services.”
Regional threats and uncertainty over the security stance of the United States, following a potential Trump victory in the 2024 presidential election, are also causing concerns. These uncertainties contribute to the net outflows of HNWIs from South Korea and Taiwan.
Misha Glenny, an award-winning journalist and Rector of the Institute for Human Sciences in Vienna, highlighted broader economic patterns. “The growth of centi-millionaires and billionaires over the past decade confirms the economic rise of Asia and the relative decline of Europe,” Glenny said. “China, India, South Korea, Singapore, and Vietnam have all seen significant increases in their high-net-worth populations.”
Prof. Trevor Williams, former Chief Economist at Lloyds Bank Commercial, echoed these sentiments. “Wealth growth is unevenly distributed, with developing and emerging economies forecast to grow at over 4% in the next five years,” Williams said. “This growth rate is more than twice that of advanced economies and has significant implications for the future distribution of millionaires and billionaires worldwide.”
The report underscores the challenges facing Nigeria’s wealthy. As the economic situation worsens, more HNWIs are likely to seek opportunities abroad. This trend not only affects Nigeria’s economy but also impacts its social fabric, as wealthy individuals often contribute significantly to local development through investments and philanthropy.
In response to these trends, Nigeria may need to address its economic and security issues to retain its high-net-worth population. By improving the business environment, ensuring political stability, and enhancing safety, Nigeria could potentially stem the tide of millionaire migration.
The Henley Private Wealth Migration Report 2024 paints a stark picture for Nigeria. The potential loss of 300 millionaires next year is a clear indicator of the broader economic and security challenges facing the nation. As wealthy individuals continue to seek safer and more stable environments, Nigeria’s economic future remains uncertain.
In conclusion, Nigeria’s projected loss of 300 high-net-worth individuals in 2024 highlights the urgent need for economic and security reforms. Addressing these issues could help retain the nation’s wealthy population and support overall economic growth.
