Nigerian Billionaire Abdulsamad Rabiu Loses Billion of Dollar as Naira Dips in Value

• The second-richest individual in Nigeria, Abdulsamad Rabiu, who chairs BUA Cement/BUA Foods, lost $1 billion in net worth
• on May 6 of this year, Rabiu's net worth reached a height of $5.9 billion; however, by August 16, it had significantly decreased to $4.8 billion
• According to Nze Duru, the main reason for the drop was the Naira's value in reference to other currencies

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Nze Chidi Duru, the deputy national organising secretary of the All Progressives Congress (APC), has urged investors, bank chiefs, and the Central Bank of Nigeria (CBN) to strengthen the naira in the wake of Abdulsamad Rabiu, the chairman of BUA Cement/BUA Foods and Nigeria's second-richest man, losing $1 billion in net worth.

Daily Sun reported that Rabiu's net worth reportedly peaked at $5.9 billion on May 6 of this year, but by August 16, it had drastically dropped to $4.8 billion.

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Cause of fall in wealth

In response to the news that the total net worth had dropped by $1.1 billion in the previous ninety days, Nze Duru stated that the Naira's value in relation to other currencies—particularly the dollar, which is Nigeria's preferred convertible currency—was the primary cause of the decline.

The APC National Working Committee (NWC) member stated in a statement that on May 6 of this year, the value of the naira was N1,378.51 for every dollar; however, by August 16, that value had dropped to N1,579.89. The decline of currency values frequently mirrors changes in stock market prices.

“The fact of the matter is that there is a correlation between currency depreciation and stock market movements. This is one reason I have continued to advocate for the strengthening of the naira against other currencies. This is for the good of all segments of the country.

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“For those involved in manufacturing, a strong naira makes their imported inputs cheaper; for the stock market, it drives a stronger pricing threshold and for the general population of consumers, it means more affordable goods.

“I once again appeal to the authorities of the CBN, bank chiefs, investors, and the exclusive circle of the very rich to come together to save the naira. If not for altruistic reasons, at least they should do so to save their wealth and material value standings,” he appealed.

Duru continued his commentary by pointing out that the whims of the stock and financial markets can occasionally take on destructive forms.

According to him, an investor may be riding high on the sentiments or fundamentals of the stock market one day, but the situation could drastically shift the next. This is especially true for affluent stocks.

“Stock prices may just suddenly take a downward trend, with huge implications for the value of stocks and the investment portfolios of rich investors. I believe this is the experience AbdulSamad Rabiu is going through at the moment,” the statement read.

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BUA Foods becomes most profitable FMCG

Legit.ng reported that BUA Foods Plc is now Nigeria's most profitable consumer goods company after recording a net profit after tax of N95.18 billion in the first half of 2023.

This represents a massive 142.21% increase compared to N39.30 billion reported in the same period of 2022.

BUA disclosed this in its latest financial report published on the Nigerian Exchange.

Source: Legit.ng