Kessington Adebutu gains $3.2 million from Wema Bank shares

Omokolade Ajayi -
Key Points
  • Kessington Adebutu’s stake in Wema Bank increased by $3.26 million, reflecting the bank’s strong performance on the NGX.
  • Adebutu holds 28.25% of Wema Bank through Neemtree Limited, equating to 3.6 billion shares in the Nigerian financial institution.
  • Wema Bank's share price surged 23.44%, pushing its market cap above $100 million and delivering strong returns despite Naira depreciation.

Nigerian businessman Kessington Adebutu has solidified his position among Nigeria’s wealthiest individuals with a $3.2 million increase in his stake in Wema Bank, one of the country’s leading financial services institutions.

Adebutu, founder of Nigeria's oldest gaming company, Premier Lotto, holds a 28.25 percent stake in Wema Bank, equating to 3,632,682,768 shares through Neemtree Limited, a special-purpose investment vehicle created in 2013. 

In the past 53 days, the value of this stake has risen by N5.45 billion ($3.26 million), reflecting Wema Bank’s growth on the Nigerian Exchange (NGX).

This increase follows a $2.82 million decline in his shares between May 8 and 24, when his stake dropped from $19.58 million to $16.71 million.

Wema Bank hits $100 million market cap

Over the decades, Wema Bank 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.

The bank’s share price on the NGX increased by 23.44 percent, rising from N6.40 ($0.00383) on Sept. 18 to N7.90 ($0.00473). This surge pushed Wema Bank's market capitalization above $100 million.

As a result, Kessington Adebutu’s stake grew by N5.45 billion ($3.26 million), from N23.25 billion ($13.93 million) on September 18 to N28.70 billion ($17.19 million).

Your Money and Your Life

Wema Bank’s shares have gained 42.34 percent this year, making it one of the top performers on the NGX and delivering strong returns to shareholders. The bank stands out in Nigeria’s financial sector amid a volatile market.

However, foreign investors have seen a 24.82 percent loss in dollar terms due to the Naira’s depreciation. This highlights the impact of FX volatility on Nigerian equities, despite strong nominal growth in local stocks.

A $100,000 investment in Wema Bank at the start of the year would now be worth $75,183 after accounting for currency depreciation, reflecting a loss of $24,817