The Central Bank of Nigeria’s (CBN) decision to unify all segments of the foreign exchange (FX) market in mid-June caused the naira to depreciate, triggering significant wealth losses for important businesses in the country, including Nigeria’s richest banker, Jim Ovia.
Ovia, who is one of Nigeria’s wealthiest businesspeople, faced significant difficulties as a result of the currency depreciation. Despite his prominence as Nigeria’s richest banker, Ovia joins a growing list of corporate titans who have been harmed by the naira’s depreciation.
Aliko Dangote, Africa’s richest man, is another figure who experienced big wealth losses earlier this year as a result of the currency unification. In June, his net worth fell below $10 billion. Notably, the recent naira depreciation has cost Ovia a stunning $158.6 million, according to data maintained by Billionaires.Africa.
Ovia’s 16.2% interest in Zenith Bank, which consists of 5,072,104,311 ordinary shares, underscores his position as Nigeria’s richest banker and one of the continent’s most powerful industrialists. Zenith Bank, a renowned lender he founded in 1990, has seen its share price rise by 41.2 percent since the beginning of the year on the Nigerian Exchange.
Based on the January 1 exchange rate of 448.06 naira to a dollar and factoring for the gain in Zenith Bank’s shares, Ovia’s holding in the prominent financial services group is projected to be worth $384.74 million.
However, the CBN’s transformative effort to unify the FX market on June 14 triggered a seismic shift in the naira’s valuation, propelling it from N448.06 to N758 per dollar at the start of the year. As a result, the value of Ovia’s interest in Zenith Bank is $226.07 million, with a significant loss of $158.67 million owing to currency depreciation.
Despite the financial hardships, Ovia’s position as Nigeria’s richest banker remains unshaken. His position as one of Africa’s most successful business magnates and a driving force in the continent’s banking sector is unshaken.
The naira’s depreciation has surely posed unprecedented hurdles for Nigeria’s business giants, resulting in significant economic losses for even the country’s most prominent actors in the country’s entrepreneurial environment.
While changing market dynamics continue to pose complex obstacles, company leaders like Ovia persevere, demonstrating the tenacity engrained in the Nigerian business sector.