According to Henley & Partners, the Nigerian passport ranks among the lowest in the world, offering visa-free access to only 1.5% of global GDP, which severely limits its holders’ travel opportunities.
During a webinar on Wednesday, Chidinma Okebalama, a senior consultant at the residence and citizenship investment company, noted that while the South African passport provides access to over 100 visa-free destinations and covers 17% of global GDP, the Nigerian passport’s reach is far more restricted.
She added that Nigeria has lost access to 14 countries over the past decade.
Henley & Partners’ report places the Nigerian passport at 92nd in the global ranking, with only 45 visa-free destinations available.
Okebalama suggested that Nigerians could improve their economic mobility by obtaining residency or citizenship through investment in countries such as Austria or Malta.
In a separate discussion, Rajat Sharma, Co-Founder and Chief Investment Officer of VAR Capital, highlighted strategies for investors to protect themselves against currency devaluation in emerging markets.
He explained that currency volatility and economic mismanagement often lead to significant devaluations, impacting wealth.
Sharma illustrated the issue with the recent decline of the Naira, noting that N1000 now buys only 0.62 USD compared to 2.23 USD in January 2023.
He advised that while emerging market securities may perform well during domestic growth periods, they carry notable risks during economic downturns.
To mitigate these risks, Sharma recommended holding USD-denominated equities to shield against currency volatility.
He also pointed out that export-driven companies, such as those in the oil sector, benefit from currency devaluations by receiving revenue in foreign currency while incurring costs in local currency, thus improving their financial position.
Additionally, Sharma suggested investing in commodities, such as gold and oil, which are priced in dollars and can help hedge against currency risk.
For inflation protection, he recommended investing in companies that produce staple foods, which are generally resilient to inflationary pressures.
