Tony Elumelu, a Nigerian banker and influential business figure, has seen his investment in United Bank for Africa (UBA) suffer a dramatic decrease in market value as apprehensive investors booked profits on their positions.
According to report, the market value of his UBA investment has plummeted by N2.57 billion ($3.26 million) since September 1, a period when investors reduced their exposure to Nigerian financial services firms.
UBA is a prominent power in Nigeria’s financial services business, with a strong presence in 24 countries across four continents, including the United Kingdom, the United States, France, and the United Arab Emirates.
Elumelu is not only one of the richest investors on the Nigerian Exchange, but also one of the richest men in the country, with a 7.17 percent interest in UBA, or 2,450,603,739 ordinary shares. He also has the distinction of being one of the country’s wealthiest bankers.
However, UBA’s share price has dropped 7.05 percent in the last eleven days, falling from N14.90 ($0.0189) on September 1 to N13.85 ($0.0176) at the time of writing. As a result, the bank’s market value has dropped to N474 billion ($600 million), ranking it 15th on the Nigerian Stock Exchange.
The drop in UBA’s share price has resulted in a N2.57-billion ($3.26-million) drop in the market value of Elumelu’s shareholding in the prominent banking organization, which has dropped from N36.51 billion ($46.29 million) on Sept. 1 to N33.94 billion ($43.03 million) at the time of writing.
Despite this significant loss, Elumelu remains one of the wealthiest investors on the local exchange and one of Nigeria’s most prosperous businesses. Despite market swings, his impact on the continent’s economic environment remains enormous.
