Kessington Adebutu gains $2.1 million from Wema Bank shares

Omokolade Ajayi -
Key Points
  • Kessington Adebutu’s Wema Bank stake increased by $2.05 million in two weeks, reflecting the bank’s 12.03% share price growth on the Nigerian Exchange.
  • Adebutu owns 28.25% of Wema Bank via Neemtree Limited, with his stake now valued at $19.07 million as Wema's market cap surpasses $110 million.
  • Despite a 59.46% local share price rise this year, foreign investors in Wema Bank faced a 16.62% dollar loss due to Naira depreciation.

Nigerian businessman Kessington Adebutu has solidified his position among Nigeria’s wealthiest individuals with a $2.1 million increase in his stake in Wema Bank, one of the country’s leading financial services institutions.

Adebutu, the 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 two weeks, the value of this stake has risen by N3.45 billion ($2.05 million), reflecting Wema Bank’s growth on the Nigerian Exchange (NGX).

This comes on the heels of a $3.26 million gain between Sept. 18 and Nov. 11, when Adebutu's stake increased from $13.93 million to $17.19 million.

Wema Bank hits $110 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 shares on the NGX have increased by 12.03 percent in recent times, rising from N7.9 ($0.0038) on Nov. 10 to N8.85 ($0.00473), pushing its market capitalization above $110 million.

As a result, Adebutu’s stake increased by N3.45 billion ($2.05 million), from N28.7 billion ($17.02 million) on Nov.  10 to N32.15 billion ($19.07 million).

Your Money and Your Life

Wema Bank shares have surged 59.46 percent this year, ranking among the top performers on the NGX and delivering robust returns in local currency.

However, foreign investors faced a 16.62 percent loss in dollar terms due to the Naira's depreciation, underscoring the impact of currency volatility on Nigerian equities.

A $100,000 investment in Wema Bank shares at the year’s start would now be worth $83,379, reflecting a $16,621 loss after adjusting for FX effects.