Nigeria Ranks 7th on Investment Migration as Investors Move Their Wealth Abroad

Nigerians continue to seek ways of preserving their wealth as they invest in other economically stable economies. The country ranked 7th, with a 15% growth rate in Nigerians investing abroad in 2021.

Henley & Partners rated the country as second in Africa behind South Africa, which is 5th globally with a 38% growth, and before Egypt, occupying 14th globally with an increase of 25%.

This movement of investment funds to more stable economies began in the last decade and is attributed to three Cs – Conflicts, Climate change and recently Covid. 

Despite private wealth in the continent expected to grow by 38% in the next decade, it did not stop private investors from mitigating against regional risk by embracing investment migration.

Investment immigration is an investment program that grants an applicant a permanent residency visa for a country by investing in such a country. This investment can be purchased by properties or by buying into an existing business. These programs are commonly called ‘golden visas’.

The African Wealth Report reveals that resources for tackling climate change are largely out of reach for African governments. With funding gaps in the face of an impending climate breakdown, Nigeria and other sub-Saharan African countries are at a double disadvantage, making them the most vulnerable to climate change. 

Political instability further compounds matters as the economies of Nigeria and other African countries experienced instability to changes in government, coups, conflicts, and other issues. In this instance, Nigeria’s multiple conflicts, from farmer-herder clashes, unknown gunmen, separatist agitations, banditry and kidnapping to terrorism; make the country particularly vulnerable. Conflict is one of the most significant of the 3 Cs for Nigeria.

These events and circumstances significantly impact people’s lives, causing them to react in various ways. Even the future optimism of a 38% increase in the continent’s wealth does not eradicate the new era of uncertainty and will reflect in the decline in the total wealth in the continent.

Investment migration, where investors secure alternative citizenship, is an attractive alternative and it has experienced steady growth over the last two-and-a-half decades. There is increased interest in residence and citizenship programs globally, with more individuals safeguarding their wealth by investing in other economies.

There was an overall increase in investment migration by 55% by the end of the first quarter (Q1) of 2022 compared to the fourth quarter (Q4) of 2021. Interest from the African continent increased by 18% by Q4 2021. By the end of Q1 2022, there was a 29% increase over Q4 2021.

It is expected that this trend will continue in Africa owing to the unrelenting market and political volatility. Thus, investors from the continent will keep diversifying their portfolios to secure greater global access and optionality against an economic downturn.

Developed countries are relaxing laws to attract investors to their countries. Malta and Portugal are leading other countries in designing the most attractive investment migration programs globally.

Malta ranked first in the Global Citizen Program Index, which it has occupied for the last seven years. As for Portugal, its Golden Residence Permit Program has the top rating in the Global Residence Program index.

Generally, European countries are leading as they occupy top spots in Henley and Partners rankings as the most sought-after investment programs globally.