Renowned Nigerian gambling magnate Kessington Adebutu has seen a notable decline in his wealth due to a recent drop in the market value of his stake in Wema Bank, one of the country’s oldest lenders.
According to data tracked by Billionaires.Africa, Adebutu, one of Nigeria’s richest men, has witnessed a N4.6 billion ($4.03 million) decline in the market value of his holding in the financial institution over the past 16 days.
This recent setback follows a surge in his fortune between March 8 and 20, when his stake in Wema Bank increased by $2.3 million, propelling his net worth from N25.88 billion ($17.30 million) to N29.43 billion ($19.67 million).
Wema Bank’s stock slumps by over 15 percent
Over the decades, Wema Bank, a financial services provider, has evolved into one of the country’s leading financial institutions. It boasts Africa’s first fully digital bank, ALAT, and is also one of Nigeria’s most resilient banks with decades of experience in the financial services sector.
Wema Bank’s shares on the NGX have plunged 15.29 percent, dropping from N8.50 to N7.20 (or $0.0075 to $0.0063) at the time of writing. This decline has pushed the bank’s market capitalization below $80 million and caused substantial losses for its shareholders.
In its recent report, the bank disclosed fraud losses exceeding $500,000 for 2023. The losses, totaling N685.59 million ($593,000), stemmed from various sources, including the bank’s digital channels, collection and payment systems, and third-party integrations.
Kessington’s stake in Wema Bank drops below $25 million
Kessington Adebutu, founder of Nigeria’s oldest gaming company, Premier Lotto Limited, holds a significant 28.09 percent stake in Wema Bank through Neemtree Limited, a special purpose vehicle established in 2013 for targeted investments.
The recent downturn in Wema Bank’s share price has impacted the value of Adebutu’s stake. It has decreased from N30.04 billion ($26.34 million) on April 2 to N25.45 billion ($22.31 million), representing a loss of N4.60 billion ($4.03 million). Despite this financial setback, Adebutu remains one of the wealthiest investors on the Nigerian Exchange (NGX).
