Nigerian billionaire businessman Abdul Samad Rabiu, renowned as one of Nigeria’s wealthiest individuals and a global Black billionaire, has experienced a substantial setback as his net worth plunged by $2.7 billion.
According to Forbes, Rabiu’s net worth, which soared to $8.4 billion in January 2024, dropped to $5.7 billion at the time of drafting this report. This downturn follows the recent devaluation of the Nigerian naira against the U.S. dollar, impacting the market value of Rabiu’s publicly listed businesses.
The $2.7-billion decrease positions him as the world’s 488th richest individual, as assessed by Forbes, attributing the decline to the revaluation of his assets triggered by the devaluation of the Nigerian naira.
Rabiu faces significant loss as naira devaluation hits BUA Cement and BUA Foods shares
Rabiu’s investment portfolio includes a 96.3-percent stake in BUA Cement, Nigeria’s second-largest cement producer, and a 99.8-percent stake in BUA Foods Plc, the unified food business of Rabiu’s BUA Group.
Due to the impact of the recent devaluation, the market value of Rabiu’s stakes in these companies fell from $6.64 billion and $5.04 billion to $4.2 billion and $3.6 billion, respectively. Marking a $4.6-billion decline amidst Nigeria’s currency woes
This financial setback coincides with Nigeria’s second devaluation of its currency in eight months, as the country strives to address its complex exchange rate system and attract investment to its struggling economy.
The recent devaluation led to a nearly 40-percent fall of the naira to 1,482.57 to the dollar on the official market on Tuesday, further slipping to 1,531 on Wednesday, closely aligning with the black market rate of N1,475 to the dollar.
Canadian firm Xe.com reveals naira’s 37-percent year-to-date plunge against dollar
Xe.com, a Canada-based online foreign exchange tools and services company, reports that the naira currently trades at 1,413.57 to the dollar on the official market, indicating a year-to-date plunge in the value of the naira by nearly 37 percent.
This latest devaluation follows market-friendly reforms implemented by Nigerian President Bola Tinubu in June 2023, aiming to discard the long-standing peg that artificially maintained the currency’s high value, resulting in the naira losing more than 67 percent of its value.
