Nigerian gambling magnate loses $4 million from Wema Bank investment

Kessington Adebutu, the renowned Nigerian gambling magnate and founder of Premier Lotto Limited, has suffered a substantial loss of $4 million from his stake in Wema Bank as the financial institution’s shares continue to plunge on the Nigerian Exchange (NGX).

According to data tracked by Billionaires.Africa, Adebutu, who ranks as one of the country’s richest billionaires, has experienced a significant decline of N3.3 billion ($4.2 million) over the past 60 days in the Nigerian-based financial services provider, Wema Bank.

Adebutu, the founder and CEO of Nigeria’s oldest and leading gaming company, Premier Lotto Limited, holds a 28.15-percent stake in Wema Bank through Neemtree Limited, a special purpose vehicle incorporated in 2013 to acquire shares in targeted organizations.

Over the decades, the financial services provider has evolved into one of the country’s pioneer financial institutions, boasting Africa’s first fully digital bank, ALAT. It is also one of Nigeria’s most resilient banks, with decades of experience in the financial services sector.

Since July 3, Wema Bank shares have slumped by 15.66 percent, from N5.81 ($$0.0075) to N4.90 ($0.0060) at the time of reporting, as investors on the Nigerian Exchange continue to reduce stakes in volatile assets amid growing economic uncertainty.

As a result of the double-digit decrease in Wema Bank shares, the market value of Kessington Adebutu’s stake has declined by N3.3 billion ($4.2 million), falling from N21.03 billion ($27.12 million) on July 3 to N17.74 billion ($22.87 million) at the time of writing.

This translates to a staggering total loss of N3.3 billion ($4.2 million) for the Nigerian gambling magnate over the past 60 days, triggered by a 15.66-percent decline in Wema Bank shares.

Adebutu’s setback underscores the volatile nature of the financial markets amidst ongoing economic uncertainties, serving as a cautionary tale for investors navigating Nigeria’s financial landscape.