The number of Nigerians who had more than $1 million in liquid assets has fallen by 53%, from 15,000 to 7,200 between 2014 and 2024. In the last ten years, almost 8000 Nigerian millionaires have lost their wealth, left the country, or simply slipped from the millionaire category. If wealth is decaying at this rate in Nigeria, what’s the difference between the ones who aren’t falling apart?
This is a more pertinent question than ever. We have seen an unprecedented disparity between those who are creating wealth and those who are just surviving with the naira devaluation, relentless inflation, and an economy that is on a relentless path to test everyone’s patience. And curiously, the disparity between the parties has little to do with their income. The answer is it’s all about their lifestyle.
So what is the secret of Nigerians who are financially successful? Let’s take a closer look.
They Treat Debt Like Fire: Handle With Extreme Caution
Financial advisors suggest that the debt with the highest interest rates, which is typically that over 25%, should be the first to be targeted for payoff. Few investments can outperform this rate of interest. The successful people don’t take out a loan to support a living that they can’t afford. When they do borrow, it is strategic, for the growth of a business, for an asset that will appreciate, or for an opportunity that has a clear return. Bad debt, the debt that fuels the show, not the business, is dealt with like a fire risk. A single spark can destroy the entire financial structure.
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They automate things that they are not sure they can do manually.
The successful savers make their automatic transfer to saving and investment accounts before they get to spending money on discretionary items on payday. This one habit takes away the emotional struggle between the thought patterns of “I should save” and “but this thing is calling my name. When temptation strikes to spend, the money has already been spent. The financially successful Nigerians don’t do it the disciplined way; they develop systems that make discipline a way of life.
They make a buffer larger than anyone else suggests
Now, something you may not expect: The general rule of thumb about how much emergency savings you should have isn’t quite applicable in Nigeria. Recommendations are typically three to six months of living expenses, whereas Nigerians are advised to consider six to nine months of essential expenses because of the country’s economic volatility. What is the reason for the additional cushion? The fact that in a country like Nigeria, where fuel prices can fluctuate in a day and a single policy change can push the exchange rate by hundreds of naira, does not make a thin safety net a safe bet. Financially successful Nigerians are people who plan for shocks and not for stability.
They refrain from increasing their expenses as their earnings increase
Would it be fair to say that a pay rise brings a better lifestyle? Yes, for most people, and that’s the bait. The three habits most Nigerians use successfully to grow their wealth from middle-class situations are diversification of income sources, keeping savings safe from inflation by investing in foreign currency or Treasury bills, and avoiding lifestyle inflation. See that last one, resisting lifestyle inflation. The first thing most people do when they see a larger amount of money in their account is to locate a greater expense to match the amount. Successful Nigerians are the ones who make money and break that vicious circle. They allowed the income and expenditure gap to increase, and they used the increased gap.
They Refuse to Keep All Their Eggs, or Naira, in One Basket
Have you ever asked yourself why some people don’t get too worked up about the high pump prices of fuel or the depreciation of the naira? It’s not luck. Its structure. Nigerians who are prosperous don’t rely on a single income or currency; they distribute their income and savings in several ways. There is some money that is in naira and some money that is in dollars. There are some savings in fixed instruments, other savings in stocks, and other savings in real assets. It is not a matter of following all investment trends, but rather a matter of safeguarding against the fact that none of the income sources or currencies can collapse on us out of nowhere.
They Position Themselves Where the Money Is
The number of people who are millionaires in Africa is expected to increase by 65% over the next ten years, as sub-Saharan Africa is expected to grow at a higher pace than Europe and the USA, at 3.7% in 2025 and 4.1% in 2026. Not all Nigerians are sitting on their hands waiting for the economy to turn around. They are betting on sectors and markets that are growing rather than shrinking: agriculture, technology, real estate, and now more than ever, businesses that generate revenue outside of Nigeria.
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They do not judge by appearance, but by income
The quietest habit is probably the most important. In Nigeria today, true wealth is measured by monthly income, not a big sum of money, because a large sum in an economy that has experienced 20-33% inflation per annum cannot be called aone-off wealth. It is important to understand that a fat bank balance with no benefit is of no value to financially successful Nigerians today, let alone tomorrow. They are not after a flashy and ostentatious look of prosperity. Every month, they are working on the design of the engine that generates it, and they’re doing it in a consistent manner.
Financial success in Nigeria these days is not about having a good luck draw or having a rich old man abroad. It’s about the same, almost mundane actions: saving more automatically, avoiding high-cost borrowing, saving more in buffers, not wanting to spend more money, diversifying income, and aligning for growth areas. It doesn’t look great in the social media feed. The flashy form of riches is dwindling, and the structured, quiet form of riches is expanding, a structured decision at a time.
