Naira Depreciation: Abdulsamad Rabiu Loses Over N1trn in Hours, Drops 200 Places in Billionaire Ranking

• Abdulsamad Rabiu, Nigeria's second-richest man, has lost over N1 trillion of his net worth within hours
• This occurred after the Central Bank of Nigeria unified the multiple official exchange rates by floating the Naira
• Rabiu's wealth loss also affected his ranking on the list of the world's wealthiest men, as he dropped 200 places

Abdulsamad Rabiu, the chairman of BUA Group, has suffered a substantial loss to his fortune in the wake of the naira devaluation.

Legit.ng reported that the Central Bank of Nigeria (CBN) announced that market forces will now determine the naira exchange rate to the dollar.

The apex bank went further by giving power to banks to sell forex freely.

Within hours, the value of the naira against the US dollar depreciated to as high as N791 from the starting day rate of N461.

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Nigerian billionaires like Rabiu watched their net worth drop massively in dollar terms.

How Rabiu's wealth dropped

In the case of Rabiu, Bloomberg reports that his fortune dropped from $8.27 billion on Tuesday, June 13, 2023, to $5.54 billion as of the end of June 14, 2023.

This indicates that in 24 hours, over N1.2 trillion ($2.73 billion) was wiped out from his net worth.

Furthermore, Rabiu dropped 200 places in the world billionaire ranking to close Wednesday, June 14, as the 463rd richest man in the world compared to the 263rd position he held a day before.

Why Abdulsamad Rabiu was affected

Rabiu is one of Nigeria's biggest investors interested in industrial goods and the food sector, among others. Most of his company's products are sold in Naira.

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BUA Cement, the country's second-largest cement producer, and BUA Foods have the largest pasta and flour plant in Nigeria.

Expert reacts

When contacted and asked if there is the ranking holds any importance, Prof. Ndubuisi Ekekwe, a renowned entrepreneur, simply responded with a "yes."

According to him, the higher a billionaire is ranked, the easier banks perceive them as a good risk for loans.

"If, for example, I am to write a brief for Aliko Dangote seeking, let's say, $50 billion in financing, there is no way I will ignore the ranking. It is very important in convincing banks to agree easily to the terms."

Tony Elumelu and wife make almost N1bn in hours from one Investment

Meanwhile, in another report, Tony Elumelu and his wife, Awele Elumelu, continue to demonstrate the importance of marrying a partner who shares the same vision

In just eight hours, the couple made almost N1 billion from their investment in Transnational Corporation of Nigeria (Transcorp)

Elumelu is a banker and serial investor, while Awele is an accomplished healthcare executive who has distinguished herself in her field

Source: Legit.ng