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Atedo Peterside advises Nigeria’s government to invest $1.5 billion in medical infrastructure

Multimillionaire economist Atedo Peterside has advised the Nigerian government to invest in medical infrastructure as opposed to the Port Harcourt Refinery. 

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Illustration: Medical industry. ©Billionaires.Africa

Multimillionaire economist Atedo Peterside has advised the Nigerian government to invest the $1.5 billion proposed for rehabilitating the Port Harcourt Refinery into building world-class medical infrastructure. 

Instead of pumping the funds into old refineries, he said Nigeria should “allow private sector investors to purchase the refinery and rehabilitate it with their own funds,” The Guardian reported.

According to the investment banker, the $1.5 billion allocated for rehabilitation could build 12 world-class hospitals. He explained that at $125 million two top-notch hospitals could be constructed in each of the country’s six geopolitical zones.

Peterside is the founder of Stanbic IBTC Bank Plc, Anap Business Jets Limited and the Atedo N. A. Peterside Foundation. As of February 2020, his estimated net worth was $120 million, according to Nigerian Infopedia.

The advice comes after President Muhammadu Buhari’s trip to London for a “routine” medical check-up two days before the country’s doctors went on a national strike over unpaid salaries. 

Doctors are demanding the payment of salaries and allowances owed for more than five years and a 50-percent upward review of hazard allowances and COVID-19 care incentives. The Guardian also reported that the president and other Nigerians spend more than N576 billion yearly on medical tourism.

On March 17, the Buhari-led Federal Executive Council approved $1.5 billion to rehabilitate the Port Harcourt Refinery, which is the country’s largest refining company. This came after Timipre Sylva, the country’s minister of state for petroleum resources,  presented a memo for the repairs. The refinery’s rehabilitation was awarded to the Italian company, Tecnimont SPA. Execution will take place in three phases over 18, 24 and 44 months.

To raise the funds, Timipre Sylva stated that about $800 million would come from appropriation, $200 million from the foreign operations of the Nigerian National Petroleum Commission, and the rest from the African Export-Import Bank, Nairametrics reported. However, Sylva said the project will not significantly add to the country’s debt burden.

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Cameroonian multimillionaire banker Alain Nkontchou’s stake in Ecobank now worth $3.76 million

Nkontchou controls a beneficial 0.98-percent stake in the bank.

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Alain Nkontchou.

Cameroonian multimillionaire banker Alain Nkontchou’s stake in Ecobank Transnational Inc., a leading pan-African banking conglomerate, is now worth N1.56 billion ($3.76 million).

Ecobank is the leading independent regional banking group in West and Central Africa, serving wholesale and retail customers in 36 African countries.

In the first nine months of 2021, the Togo-based financial services conglomerate reported an 847-percent growth in profit from $27 million to $256 million thanks to improved efficiency in its banking operations.

Nkontchou, who holds a leadership position in the pan-African banking group as a chairman and non-executive director, controls a beneficial 0.98-percent stake, amounting to 179,019,674 shares.

As of press time, Jan. 18, shares in Ecobank on the Nigerian Exchange were trading at N8.7 ($0.021), unchanged from their opening price on the local bourse this morning, as bearish and bullish sentiments were cleared out evenly.

At this price, the market value of his 0.98-percent stake in the pan-African bank is valued at N1.56 billion ($3.76 million).

Nearly a month ago, Nkontchou spent N1.13 billion ($2.35 million) to complete the acquisition of an additional 0.72-percent stake, which amounts to 131,379,263 ordinary shares in the bank.

The deal saw his stake rise from 0.26 percent, or 47,640,411 shares, to 0.98 percent, or 179,019,674 shares. Since he acquired the shareholding, the market value of his stake has expanded from N1.32 billion ($3.19 million) to N1.56 billion ($3.76 million).

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Nigerian mogul Abdul Samad Rabiu’s food business posts huge profit since listing

The news comes despite a slump in fortified sugar sales and a single-digit increase in its direct production costs.

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Abdul Samad Rabiu.

Led by Nigerian billionaire businessman Abdul Samad Rabiu, the newly consolidated food business BUA Foods Plc has reported more than $39.9 million in profit in the first nine months of 2021.

The news comes despite a slump in fortified sugar sales and a single-digit increase in its direct production costs.

Its recently published unaudited financial statement for the first nine months of 2021 represents its first financial filing since its shares were listed on the Nigerian Exchange nearly two weeks ago.

Compared to last year’s figures, BUA Foods’ net profit rose by 6.8 percent from N15.53 billion ($37.5 million) in the first nine months of 2020 to N16.56 billion ($40 billion) at the end of the first nine-month period of 2021.

Its resilient financial performance in 2021, which led to the single-digit surge in profit, was driven by a 152-percent rise in sales by industrial sugar, pharmaceutical and food and beverage manufacturing companies.

Its performance during the nine-month period was also supported by the increased sale of sweeteners coupled with a decline in operating expenses from N2.4 billion ($5.8 million) in 2020 to N1.37 billion ($3.3 million) in 2021.

As a result, BUA Foods’ operating profit rose from N18.96 billion ($45.8 million) to N21.25 billion ($51.3 million), while its net profit increased by 6.8 percent.

During the nine-month period, the company’s total assets grew by 5.36 percent from N348.65 billion ($841.5 million) to N367.35 billion ($886.7 million), while the retained earnings linked to its shareholders increased from N112.7 billion ($272 million) to N129.3 billion ($312.1 million).

As of the opening of the Nigerian Exchange this morning, Jan. 18, shares in BUA Foods were trading at a price of N61.8 ($0.149) per share, 6.3-percent lower than their opening price on the local bourse yesterday.

Since listing on the Nigerian Exchange 12 days ago, BUA Foods’ stock price and market capitalization have soared by more than 54 percent thanks to sustained investor buying interest in the company.

The upward price movement saw the consolidated food company become the most capitalized consumer goods company on the Nigerian Exchange ahead of Nestle Nigeria Plc.

The price bump also pushed the net worth of Rabiu above the $7.9-billion mark, making him the second-wealthiest man in Nigeria ahead of telecom mogul Mike Adenuga.

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South African billionaire Michiel Le Roux gains more than $141.4 million in 27 days

Le Roux founded Capitec Bank, one of South Africa’s largest retail banks, about 21 years ago.

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South African billionaire Michiel Le Roux.

South African billionaire bank founder Michiel Le Roux has seen his net worth skyrocket by more than $141.4 million in the past 27 days, as shares in South Africa’s leading retail banking group, Capitec Bank, soar by 8.4 percent.

Le Roux, who founded Capitec Bank, one of South Africa’s largest retail banks, about 21 years ago, holds a substantial 11.41-percent stake amounting to 13,190,043 shares in the Stellenbosch-based banking group.

The multimillion-dollar surge in his net worth since Dec. 21, 2021 can be linked to a surge in the market value of his stake, as shares in Capitec Bank soared above the $138-per-share mark.

As of afternoon, Jan. 17, shares in the group were worth R2,132.12 ($138.57) per share, 1.91-percent lower than their opening price on the Johannesburg Stock Exchange that morning.

At that price, the market value of Le Roux’s stake is worth more than $1.82 billion, while the bank’s market capitalization is $16.4 billion.

Shares in the bank have increased from a price of R1,967.16 ($127.85) at the closing of trading on the Johannesburg Stock Exchange on Dec. 21, 2021 to R2,132.12 ($$138.57) at the time of drafting this report.

This translates to an 8.4-percent gain for the bank’s shareholders since December 2021.

As a result of the price bump, the market value of Le Roux’s stake has increased from N25.95 billion ($1.69 billion) to R2.18 billion ($1.83 billion) between Dec. 21, 2021 and Jan. 17. This led to a total R2.18-billion ($141.41 million) gain for the billionaire in the past 27 days.

In an effort to protect his stake in Capitec from downside risks and leverage it to secure debt funding, Le Roux executed hedging and financing transactions on 1.25 million shares in Capitec Bank against the volatility in the stock market.

The businessman completed the collar transaction in four tranches between August and December. At the current market price, the transaction is worth R2.5 billion ($157.2 million).

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