Nigeria Wealth Report 2016

Nigeria’s emergence as the biggest economy in Africa has made it an attractive destination for private banking, but the sector is still is in its early stages and is much less developed in comparison to established centers like the UK, Switzerland and Singapore. This is one of the major reasons behind the preference of Nigerian HNWIs to keep most of their wealth in these centers. This scenario is likely to change as Nigerian private banking improves, and private banks are able to cater to the needs and expectations of Nigerian HNWIs.

The Nigerian economy is to a large extent dependant on crude oil exports for its growth; with the crude oil price falling for the past two years growth in the energy sector has taken a hit, along with growth in HNWI numbers. However, with crude oil prices starting to appreciate, HNWI numbers and their wealth are expected to rise, which may provide more opportunities for Nigeria’s private banking industry.

Prior to 2005, no Nigerian banks featured in the top 20 banks of Africa, but the reforms undertaken during the global crisis helped Nigerian banks such as Access Bank, First Bank of Nigeria Holding, Guaranty Trust Bank, Zenith Bank, United Bank of Africa and Ecobank Transnational to be among the 20 largest banks in the continent.

Scope

• An evaluation of the local wealth management market

• Analysis of HNWI volume, wealth and allocation trends between 2011 and 2015

• HNWI volume, wealth and allocation forecasts to 2020

• An examination of HNWI and UHNWI asset allocations across 13 asset classes

• A geographical breakdown of all foreign assets

• An alternative breakdown of liquid versus investable assets

• Data on the number of HNWIs in major Nigerian cities with forecasts to 2020

• Insights into the key drivers of HNWI wealth in Nigeria

• An independent market sizing of Nigeria’s HNWIs across five wealth bands

• Information on private banks in Nigeria

• A detailed overview of the local economy

• Wealth management and family office information

Key Highlights

How many HNWIs are there in Nigeria? How much wealth in US$ billion do they hold between them?

By what percentage did the volume of Nigerian HNWIs decrease in 2015? How does this compare to the figures for the preceding year?

What is the percentage growth forecast for HNWIs in Nigeria? What is the projected total of HNWIs by 2020? By what percentage is their wealth forecast to grow? What is the anticipated total in US$ billion?

Reasons to buy

• Analyze five Nigerian wealth bands and identify the preferences for wealth management services in each of these respective segments. Identify new growth opportunities whilst minimizing your exposure to risk

• Investigate the asset allocations of HNWIs and ultra-HNWIs, including projections of their volume, wealth and asset allocations to 2020. Determine any substantial growth over the forecast period and ensure your value proposition is aligned to increase your market share

• Assess the private banking and wealth management sector in Nigeria and ensure your business decisions are based on the most current market information

• Evaluate HNWI volumes in each major city to target prospects more effectively and drive your revenue growth

Companies mentioned

Central Bank of Nigeria, Zenith Bank, Access Bank, First Bank of Nigeria, Standard Chartered Bank Nigeria, Citibank Nigeria Ltd, Fidelity Bank Plc, Barclay Bank Plc, ARM, BridgePoint Asset Management Ltd

Table of Contents

Table of Contents

1 Introduction

1.1 Details of this Report

1.2 Definitions

2 Executive Summary

3 Nigeria Key Facts

4 Distribution of Wealth in Nigeria

4.1 HNWI Volume and Wealth Trends

5 Findings from the WealthInsight HNWI Database

5.1 Trends in HNWI Wealth to 2020

5.1.1 HNWI trend analysis

5.1.2 Wealth band trends

5.1.3 Demographic breakdown of HNWIs

5.1.4 HNWIs – industry breakdown

5.1.5 HNWIs – industry performance

5.1.6 HNWIs – breakdown by city

5.1.7 HNWIs – city performance

5.1.8 HNWIs – city population densities

5.1.9 HNWIs – city forecasts

5.2 UHNWIs

5.2.1 UHNWI volume trend analysis

5.2.2 UHNWI wealth trend analysis

5.2.3 Demographic breakdown of UHNWIs

5.2.4 UHNWIs – industry breakdown

5.2.5 UHNWIs – city breakdown and performance

5.3 UHNWIs – Billionaires

5.3.1 Billionaire volume trend analysis

5.3.2 Billionaire wealth trend analysis

5.3.3 Billionaire per capita net worth trend analysis

5.3.4 List of billionaires

5.4 UHNWIs – Centimillionaires

5.4.1 Centimillionaire volume trend analysis

5.4.2 Centimillionaire wealth trend analysis

5.4.3 Centimillionaire per capita net worth trend analysis

5.5 UHNWIs – Affluent Millionaires

5.5.1 Affluent millionaire volume trend analysis

5.5.2 Affluent millionaire wealth trend analysis

5.5.3 Affluent millionaire per capita net worth trend analysis

5.6 Core HNWIs

5.6.1 Core HNWI volume trend analysis

5.7 Core HNWIs – Mid-Tier Millionaires

5.7.1 Mid-tier millionaire volume trend analysis

5.7.2 Mid-tier millionaire wealth trend analysis

5.7.3 Mid-tier millionaire per capita net worth trend analysis

5.8 Core HNWIs – Lower-Tier Millionaires

5.8.1 Lower-tier millionaire volume trend analysis

5.8.2 Lower-tier millionaire wealth trend analysis

5.8.3 Lower-tier millionaire per capita net worth trend analysis

6 Analysis of Nigerian HNWI Investments

6.1 Analysis by Asset Class

6.1.1 Trends in alternative assets

6.1.2 Trends in ‘art, wine and wheels’

6.1.3 Trends of investment in real estate

6.1.4 Trends of investment in cash and deposits

6.1.5 Trends of investment in fixed-income

6.1.6 Investment trends in equity

6.1.7 Investments trends in business interests

6.2 Analysis of Foreign Investments

6.2.1 Investments in Europe

6.2.2 Investments in North America (including the US, Mexico and the Caribbean)

6.2.3 Investments in the Asia-Pacific

6.2.4 Investments in South America

6.2.5 Investments in the Middle East

6.2.6 Investments in Africa

6.3 Alternative Breakdown: Liquid vs Investable Assets

6.4 Analysis of Nigerian UHNWI Investments

7 Competitive Landscape

7.1 Domestic Private Banks

7.2 Foreign Private Banks

7.3 Wealth Managers

7.4 Family Offices

8 Key Drivers

8.1 NGN–US$ Exchange Rate

8.2 Real GDP Growth

8.3 Per Capita GDP

8.4 Domestic Market Capitalization

8.5 Commodity Index

8.6 Foreign Direct Investment (FDI) – Inflows and Outflows

8.7 Inflation Rate

8.8 Interest Rate

8.9 Balance of Payments

8.10 Government Debt

8.11 Stock Market Performance

8.12 Wealth Breakdowns

9 About WealthInsight

List of Tables

Table 1: HNWI Wealth Band and Group Definitions

Table 2: Nigerian HNWIs – Volume Distribution (%), 2015

Table 3: Nigerian HNWIs – Wealth Distribution Wealth Pyramid (%), 2015

Table 4: Nigerian HNWIs – Industry Performance (%), 2011–2015

Table 5: Nigerian HNWIs – Cities, 2015

Table 6: Nigerian HNWIs – Growth in Top Cities (Thousand), 2011–2015

Table 7: Nigerian HNWIs – Population Density in Major Cities 2015

Table 8: Nigerian HNWIs – Populations in Top Cities (Thousand), 2011–2020

Table 9: Nigerian HNWIs – Growth Rates for Top Cities (%), 2011–2020

Table 10: Nigeriann HNWIs – Sources of Wealth (%), 2015

Table 11: Nigerian UHNWIs – Gender Performance (%), 2011–2015

Table 12: Nigerian UHNWIs – Populations in Top Cities, 2011–2020

Table 13: Nigerian UHNWIs – Growth Rates for Top Cities (%), 2011–2020

Table 14: Nigerian Billionaires – Market Overview (Volume and US$ Billions) 2011–2020

Table 15: Nigerian Top Billionaires (US$ Billion), 2015

Table 16: Nigeriann Billionaires – Wealth Growth (US$ Billion), 2011−2015

Table 17: Nigerian Centimillionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 18: Nigerian Affluent Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 19: Nigerian Mid-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 20: Nigerian Lower-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Table 21: Nigerian HNWIs – Assets Allocations (%), 2011–2020

Table 22: Nigerian HNWIs – Holdings Growth (%), 2011–2020

Table 23: Nigerian HNWIs – Alternative Asset Composition (%), 2011–2020

Table 24: Nigerian HNWIs – Trends of Investments in Alternative Assets (%), 2011–2020

Table 25: Nigerian Trends in ‘Art, Wine and Wheels’, 2011–2015

Table 26: Global Prime Real Estate Prices per m2 (US$), 2015

Table 27: Nigerian HNWIs – Foreign Investment Allocations (%), 2011–2020

Table 28: Nigerian HNWIs – Liquidity Breakdown (US$ Billion), 2011–2020

Table 29: Nigerian HNWIs – Liquidity Breakdown (%), 2011–2020

Table 30: Nigerian UHNWIs – Allocations and Share of HNWI Assets (%), 2015

Table 31: Nigerian Exchange Rate – CAD–US$ Exchange Rate, 2011–2020

Table 32: Nigerian Real GDP Growth (%), 2011–2020

Table 33: Nigerian GDP per Capita (US$), 2011–2020

Table 34: Nigerian Domestic Market Capitalization (US$ Billion), 2011–2015

Table 35: Nigerian Commodity Indices, 2011–2020

Table 36: Nigerian Foreign Direct Investment (US$ Billion), 2011–2020

Table 37: NigerianInflation Rate (%), 2011–2020

Table 38: Nigerian Money Market Rate (%), 2011–2020

Table 39: Nigerian Balance of Payments (US$ Billion), 2011–2015

Table 40: Nigerian Government Debt as a Percentage of GDP (%), 2011–2020

Table 41: Nigerian Stock Market Performance (Index), 2011–2015

Table 42: Nigerian HNWI Wealth vs GDP Ratio (%), 2011–2020

Table 43: Nigeria – Appendix One

Table 44: Nigeria – Appendix Two

List of Figures

Figure 1: HNWI Wealth Band Definitions

Figure 2: Map of Nigeria

Figure 3: Nigerian Asset Price Performance (%), 2011–2015

Figure 4: Nigerian HNWI Performance (US$ Billion and HNWI Volume), 2011–2020

Figure 5: Nigerian vs Global HNWIs (%), 2011–2015

Figure 6: Nigerian HNWIs – Growth Factor Correlation, 2011–2015

Figure 7: Nigerian HNWIs – Wealth Pyramid (Volume Distribution), 2015

Figure 8: Nigerian HNWIs – Wealth Pyramid (Wealth Distribution), 2015

Figure 9: Nigerian HNWIs – Age Distribution (%), 2015

Figure 10: Nigerian HNWIs – Job Titles (%), 2011–2015

Figure 11: Nigerian HNWIs – Distribution by Industry (%), 2015

Figure 12: Nigerian HNWIs – City Performance (%), 2011–2015

Figure 13: Nigerian HNWIs – Volume of HNWIs by City (Thousand), 2011–2015

Figure 14: Nigerian HNWIs – City Forecasts (%), 2016–2020

Figure 15: Nigerian HNWIs – Population by City (Thousand), 2016–2020

Figure 16: Nigerian UHNWIs – Wealth Share vs Volume Growth (%), 2011–2015

Figure 17: Nigerian UHNWIs – Volume by Wealth Band, 2011–2020

Figure 18: Nigerian UHNWIs – Wealth by Wealth Band (US$ Billion), 2011–2020

Figure 19: Nigerian UHNWIs – Age Distribution (Percentage Share), 2015

Figure 20: Nigerian UHNWIs – Distribution by Industry (%), 2015

Figure 21: Nigerian Billionaires – Market Overview (Volume and US$ Billion), 2011–2020

Figure 22: Nigerian Centimillionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 23: Nigerian Affluent Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 24: Nigerian Mid-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 25: Nigerian Lower-Tier Millionaires – Market Overview (Volume and US$ Million/Billion), 2011–2020

Figure 26: Nigerian HNWs – Asset Class Composition (%), 2011–2020

Figure 27: Nigerian HNWIs – Trends in Alternative Assets (US$ Billion), 2011–2020

Figure 28: Nigerian Trends in ‘Art, Wine and Wheels’, 2011–2015

Figure 29: Nigerian HNWIs – Foreign Investment Allocation and Growth (%), 2015

Figure 30: Nigerian HNWIs – Global Distribution of Foreign Investments (%), 2011–2020

Figure 31: Nigerian HNWIs – Liquidity Breakdown (%), 2011–2020

Figure 32: Nigerian UHNWIs – Asset Class Composition (%), 2011–2020

Figure 33: Nigerian Exchange Rate – NGN–US$, 2011–2020

Figure 34: Nigerian Real GDP Growth (%), 2011–2020

Figure 35: Nigerian GDP per Capita (US$), 2011–2020

Figure 36: Nigerian Domestic Market Capitalization (US$ Billion), 2011–2015

Figure 37: Nigerian Commodity Indices, 2011–2020

Figure 38: Nigerian Foreign Direct Investment (US$ Billion), 2011–2020

Figure 39: Nigerian Inflation Rate (%), 2011–2020

Figure 40: Nigerian Money Market Rate (%), 2011–2020

Figure 41: Nigerian Balance of Payments (US$ Billion), 2011–2015

Figure 42: Nigerian Government Debt as a Percentage of GDP (%), 2011–2020

Figure 43: Nigerian Stock Market Performance (Index), 2011–2015

Figure 44: Nigerian HNWI Wealth vs GDP Ratio (%), 2011–2020

Figure 45: Nigerian HNWIs – Volume by Wealth Band, 2011–2020

Figure 46: Nigerian HNWIs – Wealth by Wealth Band (US$ Billion), 2011–2020

Figure 47: Nigerian HNWIs – Wealth per Capita (US$ Million), 2011–2020

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