Photo: Dangote, left, with BUA boss, Rabiu, both lose $3 billion each.
Dangote, Africa’s richest man loses $3bn in one day
Nigerian billionaire businessman and Africa’s richest man, Aliko Dangote, has lost a whooping sum of about $3.12 billion just 24 hours after the Central Bank of Nigeria (CBN) floated the Naira.
This is according to the Bloomberg Billionaire Index (BBI), a daily ranking of the world’s richest people that provides details on the calculations of net worth analysis on each billionaire’s profile page.
According to the data on the portal as at June 15, 2023, there were negative changes in the calculations of the wealth of the businessmen who are listed among the 500 richest men in the world.
Meanwhile, Nigeria’s second richest man and CEO of BUA Group, Abdulsamad Rabiu, also lost a sum of $2.73 billion from his wealth in a day due to the devaluation of the Naira.
Analysts say that changes in the foreign exchange markets occasioned by the floating of the naira may have contributed to the billionaires’ losses. Most wealthy Nigerians maintain most of their business exposure in the country, which means their wealth is denominated in Naira.
BUA Group is involved in manufacturing, finance, and real estate. BUA Cement and BUA Foods are notable subsidiaries.
Rabiu’s wealth, which is mostly tied to BUA Cement shares, was weakened by the recent unification of the Naira’s exchange rate system announced by the President Bola Tinubu administration, falling by $2.73 billion to $5.54 billion.
According to the company’s website, most of his fortunes come from shares in BUA Cement, Nigeria’s second-largest cement producer. He owns about 98% of the company’s shares directly and through three other companies.
BUA Group stated in its first quarterly report for 2023 and annual report for 2022, that it plans to build a new cement plant, add 5 million tons to Nigeria’s supply capacity, and export to neighbouring African countries to stabilize commodity prices, with an estimated cost of $500 million.
BUA Cement started public trading in Nigeria in January 2020. BUA Foods went public two years later in January 2022, with Rabiu controlling a 93% stake in BUA Foods, which owns Nigeria’s largest noodle and flour mill, according to the company’s first quarter 2023 and 2022 annual reports.
Rabiu was born in 1960 in Kano, a city in northern Nigeria. His late father, Ishaku Rabiu, founded Ishaku Rabiu & Sons which includes manufacturing, finance, and real estate.
After a series of mergers, including the 2009 acquisition of Cement Company of Northern Nigeria (CCNN), the company has become a major producer of cement and sugar.