The millionaire from Nigeria, Abdul Samad Rabiu, suffered a major blow in 2023 when his wealth dropped by $1.8 billion, ending the year with a $5.7 billion estimate. Rabiu, who is still ranked as the second richest person in Nigeria by Forbes, mostly suffered this setback as a result of the Central Bank of Nigeria’s (CBN) free float policy.
With a $7.5 billion net worth as of 2023, Rabiu’s fortune dropped by $1.8 billion as a result of the Central Bank’s free float policy. Rabiu’s riches was harmed by this legislation, which caused his net worth to decline to $5.7 billion.
In light of the effects of the present administration’s currency devaluation policies, Rabiu left the Bloomberg Billionaires Index, while he continued to be the second richest person in Nigeria after billionaire businessman and industrialist Aliko Dangote.
The Nigerian naira saw one of its greatest depreciations since the nation’s restoration to democracy in 1999 in 2023 when it saw a significant decline in value relative to the US dollar. Using the willing buyer, willing seller paradigm, the CBN combined all foreign exchange market groups under the Investors and Exporters window. According to Bloomberg, the value of the naira will continue to fall in 2024.
According to data from Bloomberg, the naira depreciated by 55% in 2023, falling to N1,099.05/$ on December 8, 2023, the lowest value on the official NAFEM market. The currency had the poorest performance in Africa at the end of the year, closing at N907.11/$.
Three months after the naira devaluation strategy was implemented in June 2023, Rabiu incurred a loss equivalent to one-third of his wealth. Nevertheless, he was able to reduce the amount of money he lost throughout the year to $1.8 billion because of the sharp increase in the share price of his combined food company, BUA Foods.
Rabiu’s investment in BUA Foods performed well, which was essential in reducing the effects of the currency devaluation. BUA Foods’ stock price on the Nigerian Exchange saw a 197.54% increase, ending 2023 at N193.4 per share as opposed to N65 at the end of 2022. The market capitalization of BUA Foods likewise saw a notable surge, going from N1.1 trillion at the end of 2022 to N3.4 trillion by the end of 2023.
Rabiu’s ownership of about 98 percent of BUA Cement’s shares, both directly and through connected businesses, accounts for a substantial portion of his wealth. Even while BUA Cement’s market value decreased slightly from N3.31 trillion in 2022 to N3.28 trillion in 2023, it still contributes significantly to Rabiu’s wealth.
Rabiu’s wise investments in BUA Foods have been crucial in protecting his fortune under the difficult economic conditions brought on by currency depreciation, demonstrating tenacity in difficult financial circumstances.
