A growing number of Nigerians are relocating abroad. Some call it japa. Others call it strategic repositioning. Whatever you call it, the financial logic behind it is straightforward: earning in a stronger currency while maintaining ties to Nigeria can significantly increase your wealth over time.
But relocating is not automatically profitable. The people who benefit most are the ones who plan their finances before they leave, not after. Without proper planning, the higher salary abroad can easily get swallowed by higher living costs, tax obligations in two countries, and poor decisions about what to do with the money back home.
This article breaks down why moving abroad can make you more money, where the financial pitfalls are, and what you need to sort out before you go.
The Currency Advantage Is Real
The most obvious financial benefit of working abroad is earning in a stronger currency. A mid-level salary in the UK, US, Canada, or even parts of the Middle East translates into a significant amount when converted to naira.
The naira has depreciated significantly over the past decade. According to data from the Central Bank of Nigeria (CBN), the official exchange rate has moved from around N160 to the US dollar in 2015 to over N1,500 in recent years.
This means that even modest savings abroad, when sent home or invested in Nigeria, carry far more purchasing power than the same savings would have had a few years ago. If you are sending N500,000 home monthly, that covers expenses that would require a very high local salary.
Higher Salaries Do Not Automatically Mean More Wealth
The mistake many Nigerians make is looking at the gross salary abroad without factoring in the cost of living. A salary of $60,000 in the US or £40,000 in the UK sounds impressive. But after rent, taxes, transport, food, and utilities in those countries, the amount left over can be surprisingly thin.
The people who actually build wealth abroad are the ones who live below their means in their new country and send or invest a meaningful portion of their income. That requires discipline, because the pressure to match the lifestyle of people around you is real.
Before you move, do a realistic budget for your destination city. Account for rent, tax, healthcare (which is not free everywhere), groceries, and transportation. Then look at what is left. If it is not enough to save or send home, the move may not be as financially advantageous as it looks on paper.
Tax Obligations in Two Countries
This is where many Nigerians abroad get caught off guard. When you move to another country, you are typically subject to that country’s tax laws. But depending on your residency status and whether Nigeria has a double taxation agreement (DTA) with your new country, you may also still have obligations in Nigeria.
Nigeria taxes its residents on worldwide income under the Personal Income Tax Act (PITA). If you have income sources in Nigeria, such as rental income or business profits, those may still be taxable in Nigeria even after you have left.
Nigeria has signed double taxation treaties with several countries, which are designed to prevent you from being taxed twice on the same income. The FIRS website maintains a list of countries with active DTAs.
Getting this wrong can cost you. It is worth consulting a financial adviser or tax professional who understands cross-border taxation before you relocate.
What to Do with Your Money Back Home
One of the biggest questions Nigerians abroad face is what to do with the money they send home. Leaving it in a savings account earning single-digit interest while inflation runs higher is not a strategy. It is a slow loss.
Options worth considering include:
Fixed-income investments: Treasury bills, bonds, and fixed deposit products from licensed finance companies offer more predictable returns than a standard savings account. Lukefield Finance offers investment products for both individual and corporate customers that provide competitive returns.
Real estate: Property in Nigeria remains a popular investment for diaspora Nigerians. But it requires due diligence. Title verification, trustworthy developers, and clear legal documentation are non-negotiable. Do not buy property remotely without a lawyer on the ground.
Pension contributions: If you plan to return to Nigeria eventually, voluntary pension contributions can be a tax-efficient way to build retirement income while you are abroad.
Protect Your Finances Before You Leave
Before you relocate, tie up any loose ends in Nigeria. That includes:
Paying off high-interest debt. Carrying naira-denominated debt while earning in another currency creates unnecessary risk, especially if the exchange rate moves against you.
Setting up a trusted person or financial adviser to manage your Nigerian accounts, investments, and property while you are away.
Make sure your bank accounts, pension account, and tax records are in order. Administrative problems are much harder to resolve from another country.
Updating your will or estate plan to reflect your new situation.
Moving Abroad Is a Financial Decision, Not Just a Lifestyle One
The earning potential abroad is real. But the difference between someone who builds wealth and someone who just survives in a more expensive country comes down to planning.
Know your numbers. Understand your tax obligations. Have a plan for what your money does in Nigeria while you are away. And get professional advice before you make the move.
That is how moving abroad actually makes you more money.