Table of Contents
Key Points
- Jim Ovia’s stake in Zenith Bank fell by nearly $15 million in 32 days as market volatility hit Nigerian banking stocks.
- The bank’s shares fell 8.65% since Feb. 7, pushing its market capitalization below $1 billion due to ongoing market volatility.
- Despite recent losses, Zenith Bank’s stock remains up 4.4% year-to-date, signaling continued strength in Nigeria’s financial sector.
Jim Ovia, Nigerian banker, founder, and chairman of Zenith Bank, has seen the market value of his stake in the bank drop by nearly $15 million in the past 32 days, a sharp reversal from gains he recorded earlier in the year. The decline comes as investors on the Nigerian Exchange (NGX) adjust their positions amid shifting market conditions, causing a notable drop in Zenith Bank’s share price.
Ovia, who holds a 16.2 percent stake in the bank—equivalent to 5,082,800,739 shares—has seen his holdings decline from N264.31 billion ($172.66 million) on Feb. 7 to N241.43 billion ($157.72 million), reflecting a N22.87 billion ($14.94 million) loss over the period. This follows a strong performance in January when his shareholding surged by N18.04 billion ($11.63 million) between Jan. 17 and 30, a period marked by renewed investor confidence in the Lagos-based financial giant.
Zenith Bank’s stock slumps amid market volatility
Zenith Bank, a dominant player in Nigeria and West Africa’s financial sector, has been impacted by market fluctuations that have seen its stock price decline by 8.65 percent in just over a month. The bank’s shares, which were trading at N52 ($0.034) on Feb. 7, have dropped to N47.5 ($0.031), pushing the bank’s market capitalization below the $1-billion threshold.
Despite the setback, Zenith Bank remains Nigeria’s leading financial institution, consistently delivering robust profits and maintaining its reputation for stability. However, investor sentiment has wavered in recent weeks, contributing to the decline in share price.
Jim Ovia’s long-term bet on Zenith Bank
As Nigeria’s richest banker, Jim Ovia has built a fortune on his banking empire. He founded Zenith Bank in 1990 and transformed it into one of Africa’s leading financial powerhouses. Over the decades, Ovia’s holdings in Zenith Bank have remained a cornerstone of his wealth, and despite the recent slump, his stake remains highly valuable.
Notably, while his fortune took a hit in the past month, Zenith Bank’s stock is still up 4.4 percent year-to-date. Investors who placed $100,000 at the start of the year would now have $104,400, reflecting a $4,400 gain. This suggests that while the bank has experienced short-term volatility, its long-term performance continues to demonstrate resilience.
