N860/$: Over 2000 Nigerians Drop Off Dollar Millionaire List, More at Risk as Naira Depreciation Continues

• The number of dollar millionaires in Nigeria has reduced by over 2,000, according to a new report
• Credit Suisse and UBS revealed that fewer Nigerians now have over $1 million worth of assets
• The Nigerian currency, the naira, has continued to depreciate against the US dollar and other foreign currencies, affecting the wealth of many Nigerians

Over 2,000 Nigerians have lost their dollar millionaire status amid the naira depreciation and rising inflation.

According to the latest global wealth report by global financial services companies Credit Suisse and UBS, the number of dollar millionaires in Nigeria was 38,556 as of the end of 2022.

This represents a 15% reduction, or 2,761 fewer dollar millionaires, than the 41,317 reported in 2021.

The report also noted that Nigeria recorded the largest decline in private wealth in Africa between 2012 and 2022.

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More dollar millionaires at risk

The Nigerian economy is currently at one of its lowest points, and it is expected that when the 2023 wealth report is released, the number of dollar millionaires will reduce.

For instance, since the decision of the Central Bank of Nigeria (CBN) to float the naira, the wealth of Nigeria's three richest men—Aliko Dangote, Abdulsamad Rabiu, and Mike Adenuga—has significantly decreased.

Before the CBN's decision in June 2023, Forbes reported that Dangote had over $14 billion net worth.

As of Monday, August 21, 2023, Dangote's wealth has reduced to $10.7 billion.

Similarly, BUA Chairman Rabiu, in 2023, occupied the position of the third richest man in Africa.

However, his net worth has dropped by $5.4 billion, and his ranking among the wealthiest men in the world has fallen to 507.

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Mike Adenuga's net worth has also been slashed to $3.6 billion since the CBN's decision, and he now ranks 800 globally.

Naira exchange rate

The naira exchanged at N860 a dollar in the black market and closed at N739.52 in the official market on Friday, August 18.

This indicates that since the beginning of the year, the value of the naira has dropped by 77.34% in the official market when you consider that it exchanged at N417 at the start of the year.

Additionally, the value of the naira has dropped by 43.33% in the black market, taking into account the N600/$ exchange rate at the beginning of the year.

Nigeria’s debt stock hits N82 trillion amid CBN's naira devaluation

Meanwhile, in another report, Legit.ng reported that Nigeria’s public debt had risen to N82 trillion from N77 trillion before the Central Bank of Nigeria (CBN) exchange rate unification, announced on Wednesday, June 14, 2023.

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CBN spent N74 billion on naira redesign as Naira nears N700 per dollar

According to a press release by the CBN, all exchange rate windows are collapsed into the Importers and Exporters (I&E) window, showing a merger of the multiple exchange rates.

The unification has seen the naira fall to N664 per dollar and has attracted severe consequences for the nation’s economy, including a spike in public debt.

Source: Legit.ng