Table of Contents
Key Points
- Abdul Samad Rabiu, Nigeria's third-richest man, lost over $1.6 billion from his BUA Cement stake due to Naira devaluation in 2024.
- BUA Cement shares dropped 4.12%, with a 44.98% decline in U.S. dollar terms, reducing its market cap below $2.1 billion.
- Rabiu controls 95.79% of BUA Cement, with his stake losing $1.61 billion as the Naira depreciated by 46.32% against the dollar.
Abdul Samad Rabiu, Nigeria's third-richest man and founder of the rapidly growing BUA Group, has seen a significant dip in his wealth this year, with losses exceeding $1.6 billion from his shares in BUA Cement. This decline is largely attributed to the devaluation of the Nigerian Naira.
As chairman of BUA Group, Rabiu controls 95.79 percent of BUA Cement, a stake of 32,437,676,294 shares. Since the start of 2024, this holding has lost $1.61 billion, reflecting the economic hurdles facing Nigerian business leaders as the depreciation of the Naira undermines local currency gains.
While the BUA Cement share price has fallen by 4 percent on the Nigerian Exchange (NGX), the Naira's 46.32 percent devaluation against the U.S. dollar has intensified Rabiu's losses, pushing his total stake losses beyond $1.4 billion. Had the currency maintained its pre-devaluation value, his losses would have been significantly lower at just $84.44 million.
BUA Cement shares down 4.12%
BUA Cement, the second-largest cement producer in Nigeria, is a key part of Rabiu’s BUA Group, one of Africa’s fastest-growing conglomerates. With an annual production capacity of 11 million tonnes, BUA Cement plays a vital role in the group's portfolio.
Despite its strong market position, its share price has dropped 4.12 percent year-to-date in local terms, from N97 to N93. When adjusted for the Naira's depreciation, the share price has declined 44.98 percent, from $0.11 to $0.06, dragging BUA Cement's market capitalization below $2.1 billion.
Rabiu's BUA Cement stake drops $1.61 billion
At the start of the year, Rabiu's stake in BUA Cement was valued at N3.15 trillion. However, this has since declined by N129.75 billion to N3.02 trillion. In U.S. dollar terms, the value of his holdings has dropped from $3.57 billion to $1.96 billion, reflecting a staggering $1.61 billion loss.
This underscores Nigerian investors' broader financial challenges amid currency volatility and economic uncertainty. Yet, despite these setbacks, Rabiu remains a towering figure in Africa's business landscape. With diversified interests spanning cement production, sugar refining, and real estate, his net worth stands at $4.8 billion, according to Forbes.
