Tony Elumelu, renowned as one of Africa’s most influential business executives, has become the third Nigerian billionaire to hold stakes in two companies collectively valued at over N1 trillion ($1.1 billion). This achievement, following in the footsteps of Femi Otedola and Abdul Samad Rabiu, highlights the growing influence of Nigerian business leaders.
The recent accomplishment can be attributed to the soaring market value of Transcorp Hotels Plc, a hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp), where Elumelu owns a substantial 29.5-percent stake. The company’s market capitalization exceeded the N1-trillion mark, driven by a 1,500-percent surge in its share price over the past year.
Elumelu’s leadership echoes in UBA, Transcorp, and Transcorp Hotels’ successes
Elumelu’s diversified business portfolio extends to the financial sector, with United Bank for Africa (UBA) under his leadership also surpassing the N1-trillion ($1.1 billion) threshold earlier this month. The success of Transcorp, Transcorp Hotels, and UBA underscores Elumelu’s adept leadership in different industries.
The surge in the market values of companies linked to Elumelu aligns with the broader trend on the Nigerian Exchange, which has experienced double-digit gains within the first month of the New Year, driven by sustained buying interests among investors.
As of the close of trading on Fri., Jan. 12, the year-to-date returns of the benchmark index stood at 11.06 percent, with the all-share index reaching 83,042.96 basis points. The market capitalization of listed equities climbed by 4.24 percent week-on-week to N45.44 trillion ($49.9 billion).
Elumelu’s wealth soars: Market capitalization surge elevates him among Africa’s elite
The increase in market capitalization of Elumelu’s affiliated companies has translated into a substantial surge in his personal wealth, solidifying his standing among the wealthiest individuals in Africa’s largest economy.
Notably, the market value of his stake in UBA, a key player in the financial services sector with a robust presence across 24 African countries, the United Kingdom, France, and the United Arab Emirates, has surged by N17.19 billion ($18.91 million) since the beginning of the year, rising from N64.83 billion ($71.32 million) to N82.01 billion ($90.22 million).
Elumelu’s recent milestone as the third Nigerian billionaire to hold stakes in two trillion-naira companies reflects not only his strategic business acumen but also the resilience and growth potential of the Nigerian financial and hospitality sectors in the current economic landscape.
