New Report Says Lagos Lost 100 Dollar Millionaires in One Year
- A new report has said that Lagos lost about 100-dollar millionaires in one year
- The report says Lagos retained its position as the fourth African city with the highest number of dollar millionaires
- It ranked cities in Africa with the highest number of dollar millionaires, with Johannesburg leading the pack
According to a new report, Nigeria's commercial nerve centre, Lagos, has lost 100-dollar millionaires in one year.
The latest Africa Wealth Report by Henley and Partners said although the state retained its position as Africa's fourth wealthiest city, the number of resident millionaires declined to 5,400 in 2022 from 5.500.
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Naira depreciation hurts millionaires in Nigeria
Nigeria lost a total of 200 millionaires, from 9,800 to 10,8000.
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Analysts say wealthy Nigerians have their businesses in the country, meaning their wealth is denominated in the local currency. With the depreciation of the local currency and complexities in forex and policies around it, their wealth has taken a tumble.
The global economic problem has also affected globally competitive firms, particularly those not in the tech ecosystem.
Nigeria has had two recessions which have weakened foreign inflows, resulting in problems in the country's foreign exchange market.
BusinessDay reported that in 2022, the local currency, the naira depreciated and dropped to as low as N448 per dollar from N157 per dollar in 2012 at the official exchange rate market and N740 per dollar at the parallel market from N159.
Nigeria's Bureau of Statistics said that the foreign exchange problem is also a primary contributor to Nigeria's high inflation rate, which hit 21.34% in December 2022.
The Wealth report comprehensively reviews private wealth in Africa, including high-net-worth individuals and luxury and wealth management movements.
It also highlights and provides an expert opinion on investment, the investment migration sector, and economic mobility in Africa.
Top African cities with highest number of millionaires
The Africa Wealth report provides a comprehensive review of private wealth in Africa, including high-net-worth-individual, luxury, and wealth management trends, expert insights on investment, the investment migration sector, and economic mobility on the continent.
Other top cities mentioned in the report saw a decline in their millionaires' journey within the time under review.
Johannesburg reduced the number of its billionaires from 16,000 to 14,000, and Cairo, Egypt, saw its number of millionaires decrease from 7,400 to 6,900, while Kenya lost 300 millionaires, dropping from 5,400 to 4,700.
Accra, Ghana lost 400 millionaires from 2,400 to 2,000, and Luanda failed 200 from 2,000 to 1,800.
3,000 Nigerians lost millionaire Status as report reveals African countries with most millionaires in 2023
Legit.ng reported that Nigeria a recent report has said that Nigeria experienced negative millionaire growth of about 30% from 2012 to 2022, which resulted in 2,949 persons losing their millionaire status in 10 years.
The report was disclosed in a Wealth Report complied by Henley and Partners.
The report said that Africa’s five biggest economies’ wealth markets include South Africa, Egypt, Nigeria, Kenya, and Morocco.
Source: Legit.ng
