After Dangote, Abdul Samad Rabiu Loses $2.7 Billion to Naira Devaluation
- Nigerian billionaire and industrialist Abdul Samad Rabiu's wealth has declined by $2.7 billion
- The development came following the devaluation of the naira by the Nigerian government
- Rabiu, whose net worth soared to $8.4 billion in January, is now ranked the 488th wealthiest person in the world
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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Nigeria's second-richest man, Abdul Samad Rabiu, has seen a drop in net worth as Nigeria devalued its currency for the second time in eight months.
The Nigerian industrialist lost a whopping $2.7 billion to the ongoing economic reforms by the Nigerian government.
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Rabiu's net worth plunges to $5.7 billion
Forbes reports that Rabiu's net worth plunged to $5.7 billion after surging to $8.4 billion in January 2024.
The decline comes amid currency reforms and the devaluation of the naira against the US dollar, which affected the billionaire's fortune and publicly listed assets.
The loss has repositioned Rabiu as the world's 488th wealthiest person, per Forbes estimates.
He faces a significant loss as the naira devaluation reportedly affected the share prices of BUA Cement and BUA Foods, his primary source of wealth.
The billionaire's investment portfolio includes a 96.3% stake in BUA Cement and a 99.8% share in BUA Foods.
Nigeria devalues the naira again
His stakes in the firms dropped from $6.64 billion and $5.04 billion to $4.2 billion and $3.6 billion, respectively.
Legit.ng reported that the Nigerian government reportedly devalued the naira for the second time in eight months as it battles to clear up the chaotic exchange rate and woo foreign investors.
The naira sharply declined in value in the last week of February 2024 in both the official and parallel markets after FMDQ changed the methodology used to calculate the official exchange rate, taking it closer to the black market rate.
The move is seen as a market-friendly reform introduced by President Bola Tinubu, who floated the naira immediately after he became president in May 2023.
According to reports, the new methodology moved the official exchange rate from N900 to about N1,500 per dollar.
Dangote loses $5 billion in 24 hours
Legit.ng reported that Nigeria and Africa's richest man, Aliko Dangote, has dropped from 81st to 113th on the list of the world's wealthiest people in 24 hours.
The development follows the loss of $5.4 billion (N7 trillion) suffered by the Nigerian billionaire on Thursday, February 1, 2024.
Dangote dropped as the Nigerian Exchange Limited (NGX) lost billions after two weeks of bullish run.
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Source: Legit.ng
