Nigeria Is Making More Millionaires Than Ever

By  |  February 2, 2019

Needless to say that the United States, Japan, and China, India probably included, are economic powerhouses that canopy the most millionaires. While China, the world’s second largest economy, is set to overtake the U.S in 2032, Africa is minting and brewing its league of millionaires. More so, while the U.S is yet in a muddle-like situation in what is a government shutdown, and China’s economy is at its slowest since 1990, African millionaires are on the rise.

According to a fresh report from the stables of wealth research firm Wealth-X, countries on track for the fastest growth in their wealthy populations in Africa are Nigeria, Egypt, and Kenya alongside other Asian and European economies. The study, which is some pages off Wealth-X’s inaugural “High Net Worth Handbook 2019”, collected data from more than 540,000 high net worth individuals. Observing those whose net worths are between USD 1 Mn and USD 30 Mn, the wealth research firm was able to forecast its outlook for global wealth growth over the next five years.

While taking account of the current wealth levels of various countries, as well as population growth estimates and anticipated investment opportunities, the researchers discovered what Africa could very well pride itself in. The West African Nation of Nigeria, amazingly emerged the front runner in the millionaires’ chart forecast. According to the report, the most populous black nation’s high net worth is going to balloon by a compound annual rate of 16.3 percent between now and 2030. Nigeria was closely followed by Egypt at 12.5 percent, while Kenya came seventh with 9.8 percent.

H/O: Wealth-X 190116 ASIA

The list of the rich in Nigeria is snowballing, surprisingly even as it seems the country gets harder economically. Needful to say here is that an IMF report released this month showed that countries in Sub-Saharan Africa are among the world’s fastest-growing economies. This is not the only publication that buttresses that the country’s rich club is growing. Who talks about African billionaires without talking about the Forbes list? Going back to 2012, we’d remember that the year’s list of 40 African billionaires by Forbes magazine mentioned 11 Nigerians. For the same magazine’s richest black persons in the world, it listed the trio of Mike Adenuga, Aliko Dangote and Folorunsho Alakija.

As a result of rising stock markets and commodity prices, Africans are supposedly wealthier than a year ago, and collectively so. The 23 billionaires found by Forbes in Africa last year, which is 2 more wealthy persons than it was in 2017, are cumulatively worth USD 75.4 Bn. When compared to the USD 70 Bn the magazine listed in January 2017, there is little wonder why Nigeria is blowing every country else out of the water when it comes to millionaires. And, pridefully, Aliko Dangote, for what is a seven-row record, is still Africa’s wealthiest with a net worth of USD 12.2 Bn – seemingly light years away from USD 100 Mn the tycoon had just a year ago. The entrepreneur has diversification to thank for his amassed dollar bills, having invested in fertilizer production and oil refinement.

Well, despite the seeming economic quagmire in which Nigeria is believed to have been immersed, wealth reports have been indicating that the number of millionaires minted in Nigeria has risen. According to 2015 research by New World Wealth, the millionaire number rose to 15,000, which is about a 305 percent increase from the 5,000 recorded in the year 2000. As of 2015, the combined net worth was USD 150 Bn. This number may appear to be conflicting with Forbes’ recent figures. But, as we have learned with the recent opprobrium regarding African funding, it is all about methodology. But one thing is sure: wealth reporters are calculated based on legitimate and registered assets within the tax net.

All blowing figures communicate one thing – Nigeria’s wealthy elite is expanding dramatically, and it won’t be long now before billionaires begin to grow. Come to think of it; Lagos, supposing it were a country, would be among Africa’s largest economies. While it is one of the continent’s busiest cities, it in a way explains how much the growing economy is making it easy for Nigerians to get rich. Again, Lagos is Nigeria’s commercial hub, and given that most entrepreneurial activity goes on in the region, there is another confirmation that the country’s economy truly thrives.

This former capital of Nigeria ranked fourth in the list of Africa’s wealthiest cities in 2015. While no other Nigerian cities were listed in the ten-city fortune club, Nigeria’s commercial nerve center automatically clinched the most affluent spot among major Nigerian cities. At the time, Lagos had 4 billionaires, 360 multi-millionaires and 680 millionaires. Holding USD 120 Bn of Africa’s wealth, Lagos was topped by Johannesburg and Cape Town in South Africa, as well as Cairo of Egypt.

The city probably owes its premium to the residence of top-tier entrepreneurs such as Femi Otedola, Mike Adenuga, Aliko Dangote, Tony Elumelu, Tinubu, and the likes. According to the said report, “total wealth” is the term used to describe the private wealth held by all the individuals dwelling in each of the cities. It also included their assets and liabilities while excluding government funds. The cities that ranked below were Nairobi, Luanda, Durban, Pretoria, Accra, and Casablanca.

The AfrAsia Bank Wealth report of 2018 cited that 71,000 millionaires are living in Nigeria, each with a net worth of USD 10 Mn or more. The report also revealed that country has 320 centi-millionaires, each of who have net assets worth USD 100 Mn, while the reported 25 billionaires held net assets of no less than USD 1 Bn. According to AfrAsia Bank, the total private wealth held in Africa is expected to increase by 34 percent over the next ten years, with the possibility of reaching USD 3.1 Tn by 2027.

The Nigerian millionaire gang, according to these reports, will likely earn more dollar bills in the coming years. Thanks to the ease of doing business, hard work and the unrelenting resolve of Africans, the continent too, has a big say in the global rich club.

Featured Image: Blackenterprise

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