Abdul Samad Rabiu, one of Nigeria’s richest billionaires and leading industrialists, has recorded a N125.3-billion ($301.45 million) boost to his net worth since the start of the year from his stake in BUA Cement Plc, one of Africa’s fastest-growing cement companies.
BUA Cement, Nigeria’s second-largest cement producer, operates with a combined installed capacity of 8 million tonnes per annum under the leadership of Rabiu, who owns 92.2 percent of the cement company.
The multimillion-dollar surge in the market value of Rabiu’s stake can be linked to the year-to-date gains in BUA Cement shares as market participants react to its financial performance at the end of 2021.
Since the start of the year, shares in the cement company have increased from a price of N67.05 per share ($0.1613) at the opening market on Jan. 4, to a price of N70.75 ($0.1702) per share at the time of drafting this report, this accrued a total 5.5-percent gain to the shareholders.
As a result of the single-digit price bump, the market value of Rabiu’s 92.2-percent stake has risen from N2.27 trillion ($5.46 billion) at the start of this year to N2.4 trillion ($5.76 billion) at the time of drafting this report.
This translates to a total N125.3-billion ($301.45 million) gain for the Nigerian billionaire, who is one of Africa’s wealthiest businessmen.
In 2021, Rabiu’s cement company reported its highest-ever profit as earnings figures at the end of 2021 rose by 24.5 percent from N72.3 billion ($174 million) at the end of 2020 to N90.08 billion ($216.7 billion).
The double-digit increase in earnings was supported by a surge in cement demand, which was driven by renewed interest in real estate assets and a surge in government spending on infrastructure.
As a result of the strong financial performance, the leading businessman is set to receive a dividend of N86.5 billion ($208 million) from his stake in the leading cement company.
The multimillion-dollar dividend, which will be disbursed alongside other shareholders’ payout, will be paid electronically into his account on July 21, representing a 32.5-percent increase over the $157-million dividend he received last year.