Table of Contents
Key Points
- The naira’s 44% decline in 2024, driven by Tinubu’s reforms, has slashed Abdul Samad Rabiu’s net worth by $3.6 billion.
- Rabiu’s stakes in BUA Cement and BUA Foods dropped to $1.9 billion and $4.5 billion, reflecting the naira’s weakened value.
- Once among the world’s 400 wealthiest, Rabiu now ranks 714th, highlighting the global impact of Nigeria’s currency devaluation.
In a year marked by the significant depreciation of the Nigerian naira against the U.S. dollar, naira-denominated assets have seen substantial declines in their dollar value, underscoring the broader economic challenges facing the country.
This currency devaluation has profoundly impacted the fortunes of Nigerian billionaire Abdul Samad Rabiu, whose net worth has declined by $3.6 billion since the start of 2024, reflecting the severe repercussions of the naira’s weakened position.
Rabiu, 64, serves as the chairman of BUA Group, one of Africa’s fastest-growing manufacturing and industrial conglomerates. He has endured the largest wealth loss among Nigerian billionaires this year, with his net worth falling from $8.4 billion on Jan. 1 to $4.8 billion, according to Forbes.
Rabiu slips on African rich list
This sharp drop has not only made him Nigeria’s third-richest individual—down from second at the year’s start—but also pushed him from fifth to sixth place on the African rich list.
The $3.6-billion year-to-date decline has also altered Rabiu’s global standing. Once ranked among the world’s 400 wealthiest individuals by Forbes, he now holds the 714th position. The devaluation of the naira has been a major factor, leading to the revaluation of his assets.
Rabiu’s fortune largely comprises his 96.3-percent stake in BUA Cement, Nigeria’s second-largest cement producer, and a 99.8-percent stake in BUA Foods Plc, the conglomerate’s food production arm.
The impact of the naira’s devaluation has been stark: the market value of his stakes in these companies fell from $5.2 billion and $5.04 billion to $1.9 billion and $4.5 billion, respectively.
Naira's slide: Tinubu’s economic shakeup
The naira’s sharp decline—losing more than 44 percent of its value against the U.S. dollar in 2024—has been driven by economic reforms under President Bola Tinubu, who assumed office on May 29, 2023.
Chief among these reforms was the removal of a long-standing peg that had artificially stabilized the naira’s value.
While this policy shift unlocked foreign exchange inflows, it also exposed businesses with significant foreign debt obligations to increased financing costs, compounding the challenges faced by many, including Rabiu.
