Nigeria is projected to lose 300 high-net-worth individuals (HNWIs) to other countries in 2024 amid a myriad of challenges, including insecurity and worsening economic conditions, bedevilling the country.
The Henley Private Wealth Migration Report 2024, which was released on Tuesday, noted that Nigeria’s high-net-worth individuals would consider relocating amid an alleged “worst performing market” associated with the Nigerian economy, caused by religious tensions, high crime rates, and currency weakness.
It also reveals that the number of HNWIs living in the country is down by a dramatic 45% over the past decade, making it the worst-performing market in Africa over this period.
The popular destinations for millionaires leaving Nigeria include the UAE, the UK, and South Africa, as well as several countries in Europe as these countries offer more attractive business environments, political stability, and luxury lifestyles, making them appealing to high-net-worth individuals.
The report read, “Besides China, the UK, India, South Korea, and Russia, the remaining places in the Top 10 millionaire outflow ranking are taken up by Brazil where a millionaire drain of 800 is projected this year, followed by South Africa (-600), Taiwan (-400), and Vietnam and Nigeria, which are both set to see 300 millionaires take flight.
“But as Dr. White points out, HNWIs are leaving these other countries for quite different reasons from the UK. “Both China and India are seeing high net outflows because of the success of their sizable economies in generating new millionaires, although slowing wealth growth in China in recent years could mean sustained losses become more damaging over time. As do those from many other developing nations, including notably Brazil, Vietnam, South Africa, and Nigeria, Indian millionaires often depart the sub-continent in search of a better lifestyle, safer and cleaner environments, and access to more premium health and education services. Elsewhere, regional threats and uncertainty over the security stance of America following a potential Trump victory in the 2024 US presidential election in November mean that South Korea and Taiwan are continuing to see net outflows of HNWIs.”
“Award-winning journalist and Rector of the Institute for Human Sciences in Vienna, Misha Glenny, says “figures detailing the growth of centi-millionaires and billionaires over the past decade confirm a broader economic pattern across the globe: the growth of Asia and the relative decline of Europe. China, India, South Korea, Singapore, and Vietnam have all registered a huge relative increase in their number of high-net-worth individuals — we can be confident this trend will continue as intra-Asian growth continues to surge.”
“Prof. Trevor Williams, former Chief Economist at Lloyds Bank Commercial, agrees, saying “wealth growth is unevenly distributed, with developing and emerging economies forecast to grow at over 4% over the next 5 years — more than twice the rate of the advanced economies. That has enormous implications for the future growth and distribution of millionaires and billionaires worldwide. Many countries from the so-called developing world are seeing a significant increase in their ultra-high-net-worth individual populations.”
