Wealth-tech Sees Boom In Gloom As Nigerians Seek Haven In Hardship

Linda Ikechukwu, a Developer Advocate at Smallstep, vividly remembers the sharp realisation that would change her investment approach forever. In 2022, she bought a piece of land in Nigeria for NGN 30 M, equivalent to about USD 37 K at the prevailing exchange rate.

Fast-forward three years, and despite what seemed like a 22% return on investment considering the offer she’s now received for the property, the value of her land has barely increased. “It’s a loss when compared to inflation rates,” she shared.

At NGN 55 M (~USD 35 K), the nominal gain pales when compared to inflation rates, not to mention the economic impacts of the devaluing naira.

After crunching the numbers, Ikechukwu discovered that treasury bills would not have yielded better results either. By contrast, investing in a dollar-denominated mutual fund would have been far more lucrative. With a 6% annual return, she would have USD 44 K now, which would be worth ~NGN 72 M today, she figures, benefiting from the d...