Naira devaluation cuts $72.4 million from Jim Ovia's Zenith Bank stake

Feyisayo Ajayi -
Key Points
  • Zenith Bank's share price rose by 18.63%, but the Naira's devaluation erased gains, causing a 32.48% loss in dollar terms.
  • Jim Ovia's stake in Zenith Bank dropped by $72.36 million due to the Naira's decline, despite his shares increasing in local currency.
  • Zenith Bank's strong performance and international expansion continue, but currency depreciation has hindered Ovia's wealth accumulation in dollar terms.

Despite a double-digit increase in Zenith Bank’s share price, Jim Ovia, Nigeria's richest banker and the founder of the leading financial services provider, has seen a significant decline in the market value of his stake in the Lagos-based bank. This is due to the devaluation of naira.

As chairman of Zenith Bank, Ovia holds 5,082,800,739 shares. Since the beginning of the year, the value of his stake has fallen by $72.36 million, a sharp decline that mirrors the broader economic challenges faced by Nigerian business leaders. The devaluation of the Naira has eroded nominal gains, reflecting the impact of currency depreciation on wealth accumulation.

Zenith Bank’s valuation hit by naira devaluation

Despite Zenith Bank's share price maintaining an upward trend on the Nigerian Exchange (NGX) this year, the devaluation of the Nigeria naira against the U.S. dollar has effectively negated these gains, resulting in a loss once the currency depreciation is accounted for.

Had the naira retained its pre-devaluation value, Ovia’s stake would have increased by $41.5 million. This downturn follows President Bola Tinubu's decision to liberalize Nigeria’s foreign exchange market, which triggered the Naira’s steep decline.

Naira devaluation cuts market value by 32.48 percent

Zenith Bank continues to solidify its position as one of Nigeria’s leading financial institutions, maintaining a strong foothold in the banking sector. With a significant presence in Nigeria and West Africa, it ranks among the country’s most profitable banks.

As part of its ambition to become a dominant financial services provider across Africa, Zenith Bank has extended its reach globally, opening a branch in Paris and planning new subsidiaries in Cameroon and Ivory Coast—key milestones in its broader international strategy.

The bank's robust earnings are evident in its recent financial performance, with a 9-month profit of $495.3 million. This performance drove an 18.63 percent increase in its share price, from N38.65 on January 1 to N45.85.

However, when adjusted for the Naira's depreciation, the growth translates into a 32.48 percent loss in dollar terms, with the share price dropping from $0.044 to $0.029, resulting in a market capitalization of just under $930 million.

Jim Ovia's stake grows but dollar value drops

Ovia’s stake has increased by N36.6 billion in local currency terms, rising from N196.45 billion on Jan. 1 to N233.05 billion.

However, the devaluation of the Naira has diminished these gains in dollar terms, resulting in a year-to-date loss of $72.36 million—down from $222.8 million to $150.44 million.

Despite these setbacks, Ovia retains his position as Nigeria’s wealthiest banker and the largest shareholder in Zenith Bank, solidifying his influential role within the country’s financial sector.