Abdul Samad Rabiu, a Nigerian billionaire, has suffered greatly as a result of this currency devaluationHis net worth has dropped by $3.6 billion since the start of 2024, illustrating the severe repercussions of the naira’s declineHis net worth decreased the most among Nigerian billionaires this year, from $8.4 billion on January 1 to $4.8 billion
Henzodaily.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Nigerian billionaire Abdul Samad Rabiu’s fortunes have been significantly harmed by this currency devaluation.
The majority of Rabiu’s wealth is made up of his 99.8% ownership in BUA Foods Plc. Photo credit: Abdulsamad Rabiu
Source: Getty Images
Since the beginning of 2024, his net worth has decreased by $3.6 billion, demonstrating the serious consequences of the naira’s weakening position.
Naira-denominated assets have experienced sharp drops in their dollar value during a year in which the Nigerian naira depreciated significantly against the US dollar, highlighting the nation’s wider economic difficulties.
BUA Group, one of Africa’s fastest-growing industrial and manufacturing giants, is chaired by Rabiu. According to Forbes, his net worth dropped from $8.4 billion on January 1 to $4.8 billion, the biggest reduction among Nigerian billionaires this year.
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Billionaires.africa reported that he is now the third-richest person in Nigeria, down from second at the beginning of the year. Similarly, he has fallen from fifth to sixth on the African rich list as a result of this dramatic decline.
Rabiu’s global standing has also changed as a result of the $3.6 billion year-to-date drop. He was once listed by Forbes as one of the 400 richest people in the world, but he is currently placed 714th. One of the main causes of the revaluation of his assets was the depreciation of the naira.
The majority of Rabiu’s wealth is made up of his 99.8% ownership in BUA Foods Plc, the conglomerate’s food production division, and his 96.3% stake in BUA Cement, Nigeria’s second-largest cement manufacturer.
The market worth of his investments in these businesses dropped from $5.2 billion and $5.04 billion to $1.9 billion and $4.5 billion, respectively, as a result of the naira’s devaluation.
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Under President Bola Tinubu, who took office on May 29, 2023, economic reforms have been the primary cause of the naira’s slide, which saw it lose more than 44% of its value in relation to the US dollar in 2024.
The removal of a long-standing peg that had artificially steadied the value of the naira was the most important of these moves.
The difficulties experienced by many, including Rabiu, were made worse by this policy adjustment, which opened up foreign exchange inflows but also exposed companies with large international debt obligations to higher financing costs.
Rabiu builds multi-million naira project
Henzodaily.ng reported that the Abdul Samad Rabiu Centre for Corrosion Research at the Federal University of Petroleum Resources (FUPRE), Effurun, Delta State, is now under development thanks to the efforts of the Abdul Samad Rabiu Africa Initiative (ASR Africa).
The university is receiving a N250 million grant to build this center as part of ASR Africa’s Tertiary Education Grants Scheme (TEGS), which helps the nation’s higher education institutions raise the caliber of their educational offerings.
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Ubon Udoh, MD/CEO of ASR Africa, reaffirmed the dedication of Abdul Samad Rabiu, Chairman of ASR Africa and the BUA Group, to giving back to the African continent and leaving a lasting impression in the education sector during the groundbreaking ceremony.
Source: Henzodaily.ng