Nigeria lost one thousand super rich, high net-worth individuals (HNWI) who, by choice, moved out of the country to live and do business in other countries in 2017, according to a New World Wealth report, that became widely available Wednesday.
The report authors explained that such a loss of wealthy individuals by a country normally results from a sign of trouble in the political economy of a country, noting that: “Rich people are often the first people to leave because they can — unlike the middle class or the poor.”
New World Wealth said it does not forecast any growth in the ultra-wealthy population in Nigeria over the coming decade following on from a 20 percent decline last year alone due to economic and political tensions in the country.
In another global wealth report, however, a group of research analysts in the 2017 Knight Frank “The Wealth Report”, that provides a global perspective on prime property and investment, described Nigeria as a potential hotspot for wealth creation that was worth watching.
- Hold Guinness, sell Unilever, BUA, buy Zenith, MTN, UBA, GTB, FBNH…
- Global investors see China, Covid-19, Trump, Brexit as top concerns for H2 2020
- Nigeria, other African oil exporters’ll lose $34bn – IMF
- Nigeria: Contribution of non-oil exports to economic growth
- A cloudy second half as Nigeria navigates through coronavirus storm
But the group warns that taking into account the exodus from the country of 1000 HNWIs in 2017 alone, it would take another round of political change for Nigeria’s wealth to stabilize and, therefore, create the environment for the country to have net positive migration of super-rich and wealthy individuals.
In the view of Geoffrey Yu, who heads the United Kingdom Investment Office at Switzerland’s global financial services firm, UBS, there are opportunities for wealth creation that could come to fruition if the stability of governance is achieved.
“The key factor will be whether the greater stability of governance can be achieved, but there are reasons to be optimistic, especially after the last general election in 2015,” Yu said.
He specifically noted that if there was a further round of political change, “ people will feel more secure investing from overseas – and the wealth created in the country will be more likely to stay put,” he explained.
Areas of the Nigerian economy where there are potentials for wealth creation, according to Yu, are tech and telecoms sector and mobile banking, adding also that as an oil exporter, Nigeria stands to gain from a rise in oil prices, notwithstanding that Kemi Adeosun, the country’s finance minister, has recently said Nigeria no longer cares about global oil prices in its planning.
But Yu admonished the Nigerian government to invest any windfall arising from rising oil prices on education, infrastructure and productivity. “As an oil exporter, Nigeria also benefits from the stabilisation and potential uplift of oil prices. It is imperative that any commodity windfall is invested in education, infrastructure and productivity, and in a manner that benefits all segments of this diverse society,” Yu said.
Besides, as a country now starting from a low base after recession, Yu noted that very simple changes to political, fiscal and governance frameworks can make a big difference, stressing that, “the returns on reform” will be high.
Polaris Bank in its support for SMEs in the health sector (private hospitals, pharmacies, retailers, diagnostic centres, etc) launched a one stop-solution, in September 2019, and has disbursed billions to support the growth of the Nigerian health sector through tailor-made banking products for businesses in this space. This drive was further re-enforced by the CBN […]
As the Central Bank of Nigeria rejigs the forex market as a prelude to rate unification and further devaluation of the naira, currency traders stayed away from the market and refused to submit quotes at the official forex market on Monday. The operators have been threading cautiously since the weakening of the naira on Friday. […]
By Kelvin Kariuki FIVE YEARS INTO THE AFRICAN DEVELOPMENT BANK’S ambitious New Deal on Energy for Africa (NDEA), the Bank’s investments are set to provide electricity access to around 13 million people and deliver about 55,000 km of distribution lines, and 6,700 km of transmission lines, of which 3,200 km are for regional interconnections. The […]
Amid forex supply limitations, the Central Bank of Nigeria funded the the forex market with a total of $11.5bn during the first quarter of the year 2020. Data from the CBN on the supply of forex showed that $2.96bn, $3.39bn and $4.7bn were injected into the market in January, February and March respectively. The investors’ […]
2020 has been eaten up by the pandemic, COVID-19. In its wake, we are not sure what meaningful activities can still take place this year. Last year though, the African Insurance Barometer (AIB) successfully carried out a survey of the insurance industry in Africa and came out with a report. With COVID-19 making it look […]
IT IS NATURAL FOR US TO EXPECT improvements when changes are announced but we would often be jolted into reality when those who have the responsibility to effect the improvements wait until their departure to express the frustrating environments under which they operated, and led others. As the leadership mantles change in Nigeria’s insurance sector […]
By Sunny Chuba Nwachukwu The non-oil exports strategy Diversification of the nation’s economy through exports of non-oil (made in Nigeria) goods or services to the world markets is a key economic strategy that requires urgent and critical attention at this moment that economies are reopening after the lockdown. The COVID-19 pandemic impact on most world […]
Enjoy the digital feel of our print edition. Click here to read this paper now. Related posts:Traders stay away from forex market over naira devaluationCBN funded forex market with $11.5bn in Q1 – CBNInsurance sector leadership changes and policy holders’ expectationsCBN hits banks with massive debits, deducts N122bn in rate unification driveBUA Group eyes fresh $450m […]
As part of its forex management effort during foreign exchange shortages, the Central Bank of Nigeria hit baks with extra ordinary debits amounting to N122bn ($338m) from banks’ accounts before reducing the value of the naira at a retail auction on Friday in a move to unify its multiple exchange rates. Nigeria’s multiple foreign-exchange rates […]
In furtherance of its business expansion programme, BUA Cement plans to establish a three-million metric tonne cement plant and 50 megawatts power plant in Guyuk and Lamurde local governments of Adamawa State. Abdul Samad Rabiu, chairman, BUA Group, stated the readiness of the group when he led the management of BUA Cement on a courtesy […]
[table id=1 /]