Financial Advisory - Nigeria | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$21.37bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.87%, resulting in a market volume of US$22.31bn by 2029.

Definition:

Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).

Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading

Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Retail/Non-Professional Investors

The Financial Advisory market in Nigeria is experiencing significant growth and development, driven by various factors such as increasing investor interest, changing regulatory landscape, and the need for professional financial guidance. Customer preferences in the Financial Advisory market in Nigeria are shifting towards seeking expert advice and guidance to make informed investment decisions.

With the growing complexity of financial products and investment options, individuals and businesses are realizing the importance of professional financial advice to maximize returns and mitigate risks. This preference for expert guidance is driving the demand for Financial Advisory services in Nigeria. Trends in the Financial Advisory market in Nigeria indicate a shift towards more personalized and holistic financial planning.

Customers are increasingly looking for tailored solutions that address their unique financial goals and objectives. This trend is driving the adoption of technology-driven platforms that offer personalized financial planning tools and services. Additionally, there is a growing demand for socially responsible investment options, with customers seeking to align their investments with their values and contribute to sustainable development.

Local special circumstances in Nigeria, such as a large population and a growing middle class, contribute to the development of the Financial Advisory market. The increasing wealth and disposable income of the middle class are creating a demand for professional financial advice and investment opportunities. Additionally, the Nigerian government's efforts to diversify the economy and attract foreign investments are creating a favorable environment for the growth of the Financial Advisory market.

Underlying macroeconomic factors, such as economic growth, stability, and regulatory reforms, are also driving the development of the Financial Advisory market in Nigeria. The country's economy is experiencing steady growth, with a focus on sectors such as agriculture, manufacturing, and services. This growth is attracting both domestic and foreign investors, who require financial advisory services to navigate the Nigerian market.

Furthermore, regulatory reforms aimed at improving transparency and investor protection are increasing the demand for Financial Advisory services. In conclusion, the Financial Advisory market in Nigeria is witnessing significant growth and development due to increasing customer preferences for expert financial advice, shifting trends towards personalized financial planning, local special circumstances such as a growing middle class, and underlying macroeconomic factors such as economic growth and regulatory reforms. These factors are shaping the landscape of the Financial Advisory market in Nigeria and creating opportunities for financial professionals and firms to cater to the evolving needs of customers.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.