Migration threatens talent retention in Nigeria’s finance sector

A recent survey by Duplo has revealed that over 22.8 percent of finance professionals have relocated abroad in the past five years.

The migration, often referred to as ‘Japa,’ highlights the growing challenges facing the industry, as skilled professionals seek better financial stability and career growth overseas.

The survey, which engaged 593 finance professionals, disclosed that economic instability (41.4 percent) and migration (34.5 percent) are the most significant threats to talent retention in the sector.

It said, “91.6 percent of respondents reported being negatively impacted by exchange rate fluctuations and inflation, signaling the intense economic pressures these professionals face.”

“High inflation and frequent naira fluctuations are pushing professionals to seek roles that can better hedge against these effects, whether through FX-linked compensation or opportunities abroad,” it said.

The Duplo 2024 Salary Report highlighted that key reasons for the growing migration include stagnant salaries, limited local opportunities for compensation adjustments in line with inflation, and fluctuating FX rates. Many professionals expressed dissatisfaction with the lack of salary progression, which they noted undermines long-term career commitments.

Read also: Japa no more: Keeping Nigeria’s brightest at home

“The current economic climate makes it difficult to see a sustainable future here,” the report said. With inflation eroding purchasing power and economic uncertainty deepening, the lure of stability and FX-adjusted compensation abroad is increasingly compelling.

The report aligns with data from Macrotrends, which shows Nigeria’s net migration rate in 2024 at -0.267 per 1,000 population, a slight decline of 2.2 percent from 2023. The World Bank also corroborates this trend, noting a rise in skilled Nigerian professionals seeking better economic opportunities abroad.

For Nigerian finance firms, the “Japa” phenomenon presents an urgent call to action. Without competitive compensation strategies and economic stability, the exodus of talent could undermine the sector’s growth and innovation.

Yele Oyekola, CEO and co-founder of Duplo commented on the findings, emphasizing the importance of inflation-adjusted compensation to retain talent.

“CFOs and finance leaders need to prioritize transparent and inflation-adjusted compensation packages to mitigate the current economic pressures and give themselves the best chance of retaining talent,” Oyekola said.

He also recommended that companies explore benefits such as flexible work arrangements, performance-based incentives, and upskilling opportunities to improve employee engagement and retention without overburdening budgets.