Despite the challenges posed by currency devaluation and economic uncertainties, Nigerian billionaire Mike Adenuga has managed to maintain his position among the world’s wealthiest, currently ranking as the 892nd richest billionaire globally.
With a net worth of $3.3 billion, Adenuga holds the title of the third-richest billionaire in Nigeria, standing as a top figure in Africa’s elite business circles. However, this figure reflects a decline of $2.8 billion in his net worth this year alone, from $6.1 billion at the start of 2023.
Currency devaluation hits Mike Adenuga’s business empire
The primary factor contributing to this substantial plunge is the impact of currency devaluation on the valuation of Adenuga’s extensive portfolio of assets and businesses, most of which are based in Nigeria. He owns stakes in Globacom, Nigeria’s second-largest telecom service provider, as well as investments in the oil industry through Conoil Producing and Conpetro.
Adenuga’s diversified holdings also extend to Sterling Financial Holding, where he maintains a 30.63-percent stake. This stake, cleverly distributed between 5.63 percent in his name and 25 percent through Silverlake Investment Limited, accounts for a wealth of $39.65 million.
Additionally, he holds a 25.1-percent stake in the construction company Julius Berger, valued at $17.4 million, and a 0.86-percent stake in Transcorp, solidifying his presence among Nigeria’s financial elite.
$2.8 billion drop mirrors Nigeria’s economic struggles amid currency crisis
The decline in his fortune in 2023 marks a significant departure from his standing at the beginning of the year when he held the title of the second-richest man in Nigeria and the sixth-richest billionaire in Africa.
Forbes records over the past decade reveal a consistent erosion of his wealth, starting at $10 billion in 2016 and gradually dwindling to $6.1 billion at the beginning of this year. The recent blow to Adenuga’s fortune, with a $2.8 billion decline, underscores the broader economic challenges facing Nigeria.
This dramatic plunge is linked to the country’s currency hitting a record low, impacting not only Adenuga’s wealth but also reflecting the adverse effects of currency devaluation on the financial landscape, wealth distribution, income, and purchasing power across the nation.