Nigeria Set to Lose 300 Millionaires in 2023, Becoming Second Biggest Wealth Exodus in Africa

In a disheartening revelation for Nigeria’s economy, the 2023 edition of the Henley Private Wealth Migration Report predicts the departure of 300 dollar millionaires from the country this year, marking a significant increase from the 200 recorded in 2022.

This surge in millionaire emigration places Nigeria as the second-largest loser of wealthy individuals on the African continent, trailing behind South Africa, which is expected to witness an outflow of 500 millionaires.

The report focuses specifically on high-net-worth individuals (HNWIs) who have relocated and reside in their new country for more than six months each year. Shedding light on global wea

lth and investment migration trends, the report reveals that the United Arab Emirates (UAE) is projected to welcome approximately 4,500 millionaires in 2023, a figure significantly higher than the pre-pandemic average of 1,000 HNWIs per year.

While the exodus of millionaires from Nigeria and other countries serves as an indicator of economic health, Andrew Amoils, head of Research at New World Wealth, highlights that nations consistently attracting affluent families through migration tend to possess robust economies, low crime rates, and attractive business prospects.

China takes the lead in global millionaire outflows, with an estimated 13,500 leaving the country, followed by India with 6,500. The United Kingdom and Russia secure third and fourth positions, respectively, with 3,200 and 3,000 millionaires leaving their shores.

Regarding Nigeria’s plight, Investors King previously reported a 30% decline in the number of dollar millionaires within the country over the past decade, largely attributed to the depreciation of the Nigerian naira and other economic challenges.

The complexity of foreign exchange policies and currency depreciation have adversely affected the wealth of affluent Nigerians, as most of their businesses operate within the country and their wealth is denominated in naira.

Temitope Omosuyi, investment strategy manager at Afrinvest Limited, emphasizes that the recent global economic challenges have particularly impacted non-globally competitive companies, especially those not operating in the technology sector.

Nigeria has experienced two economic recessions in the past seven years, leading to a decrease in foreign inflows and creating liquidity challenges in the foreign exchange market. The subsequent depreciation of the naira against the dollar further exacerbates the situation, with the official exchange rate dropping to 448 naira per dollar from 157 naira per dollar in 2012. On the parallel market, the naira fell to 740 per dollar from 159 per dollar.

These economic circumstances have also contributed to Nigeria’s soaring inflation rate, which reached 22.22% in April 2023, the highest in 17 years, compared to 12% in December 2012, according to the National Bureau of Statistics.