Nigeria has been projected to lose 300 millionaires at home to another country in 2024, according to a report on migration by Henley & Partners.
According to the report seen by Nairametrics, approximately 128,000 of the world’s millionaires are projected to migrate to a new country in 2024, with the United Arab Emirates (UAE) and the USA topping the list of destinations by these millionaires from Nigeria and others.
The report states that millionaire migration is a leading indicator of the overall health of a country and its economy.
Henley & Partners is a British investment migration consultancy that runs the world’s leading government advisory practice for investment migration.
Top ten country millionaire outflows/inflows
The report listed Nigeria as number nine out of the top ten countries projected to lose a sizeable number of their millionaires to another country.
Millionaires referred to in the data are individuals with liquid investable wealth of $1 million or more.
While Nigeria and Vietnam are projected to experience a net outflow of 300 millionaires respectively in 2024, 15,200 Chinese millionaires and 9,500 British millionaires are projected to migrate to another country the same year, being the top two.
India and South Africa will experience 4,300 and 1,200 millionaires outflows in the same year, according to the report.
UAE is the only country projected to experience the highest net inflows of millionaires in 2024 totalling 6,700 and this is due to its growing global appeal as a tourist destination.
According to the data, the UAE is trailed by the USA (+3,800), Singapore(+3,500), Canada(+3,200), Australia(+2,500), Italy (+2,200)Switzerland (+1,500), Greece(+1,200), Portugal(+800) and Japan(400).
Spotlight on Nigeria
For Nigeria, the report states that the country’s high-net-worth individuals would consider relocating amid an alleged “worst performing market” associated with the Nigerian economy.
The reports stated,
“Religious tensions, high crime rates, and currency weakness all weigh heavily on Nigeria.
“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.
“Popular destinations for millionaires leaving Nigeria include the UAE, the UK, and South Africa, as well as several countries in Europe.”
More Insights
The report added that the benefits of migration of wealth and talent to these host countries are wide-ranging and moderated by four key indicators:
- Forex revenue: The report explained that migrating millionaires are a vital source of forex revenue as they tend to bring their money with them when they move to a new country. “For instance, a migrant who brings $10 million with them is equivalent to a country generating $ 10 million in export revenue as both transactions generate $10 million of forex revenue for the country,” it stated.
- New business: It states that many relocating high-net-worth individuals (around 20%) are entrepreneurs and company founders, who seek to start businesses in a new country. Such migration is expected to create local jobs.
- Stock markets: The report states that millionaires boost the local stock market via their equity investments.
- Job creation: The report added that “most importantly, high-net-worth individuals indirectly create thousands of well-paying jobs via their spending power, especially in high-value sectors such as luxury hotels, fine dining, luxury retail, fashion, hi-tech, automotive, prime property, wealth management, and family offices.”
Methodology
The data was supplied by wealth intelligence firm, New World Wealth, according to the British firm, is “the only known independent research firm systematically tracking global wealth migration trends between countries and cities.”
What you should know
- Meanwhile, Nigeria prides itself on being among Africa’s three largest economies along with South Africa.
- World Bank data estimates that inflation in the Nigerian economy is expected to gradually decrease on the back of monetary policy tightening and exchange rate stabilization.
- As a result, poverty rates are expected to increase in 2024 and 2025 before stabilizing in 2026.
