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Nigerian billionaire businessman Abdul Samad Rabiu, chairman of BUA Group, one of Africa’s fastest-growing manufacturing and industrial conglomerates, has seen his net worth tumble $1.2 billion amid the recent weakness of the naira against the U.S. dollar.
Rabiu, ranked as Nigeria’s third-richest person and Africa’s sixth by Forbes, has experienced a notable drop in his wealth figures in recent times.
Since the start of the week, Rabiu’s net worth has fallen from $7.1 billion to $5.9 billion, a significant $1.2-billion decline. This drop has pushed him down to the 497th richest person globally, highlighting the severity of the impact.
Naira weakness behind Rabiu’s setback
The recent weakness of the naira has been cited as the primary cause behind Rabiu’s recent financial setback. The Nigerian currency has weakened for four straight days, erasing earlier gains after reaching three-month highs.
This decline is compounded by dwindling domestic dollar liquidity, further pressured by Nigeria’s foreign exchange reserves falling to a seven-year low.
On Tuesday, the naira depreciated further against the U.S. dollar, closing at 1,300 naira per dollar at the official market. In response to this worrying trend, the Central Bank of Nigeria (CBN) has intensified efforts to stabilize the exchange rate.
A new circular released Tuesday revealed the CBN is selling additional dollars to Bureau De Change (BDC) operators.
Wealth anchored in public listings
Nigerian billionaire Abdul Samad Rabiu’s fortune is largely tied to his publicly traded companies. Rabiu maintains significant control, with a 99.8-percent stake in BUA Foods and a 96.29 percent stake in BUA Cement.
BUA Cement, the nation’s second-largest cement producer, boasts a market capitalization of N4.85 trillion ($3.9 billion). BUA Foods, the country’s most valuable listed food and agri-business company, holds a market cap of N6.84 trillion ($5.53 billion).
Naira volatility ripples through wealth
However, Rabiu, like many Nigerian business leaders, faces challenges due to the naira’s volatility against the dollar. This broader currency weakness raises critical questions about Nigeria’s economic resilience in the face of external pressures.
The decline in Rabiu’s net worth exemplifies the significant impact of currency fluctuations on the fortunes of Nigeria’s wealthy. This trend potentially signals wider challenges for the nation’s economy and top earners.
