Abdulsamad Rabiu’s $1bn Dollar Loss In Net Worth: Another Call To Strengthen The Naira

The vagaries of the financial and stock markets can sometimes be vicious in their manifestations at times.

Today, an investor, especially in wealthy stocks, may be riding high on the sentiments or fundamentals of the stock market, but the story may change abruptly the following day. Stock prices may just suddenly take a downward trend, with huge implications for the value of stocks and the investment portfolios of rich investors.

I believe this is the experience AbdulSamad Rabiu, Nigeria’s second richest man and Chairman of BUA Cement and BUA Foods, is going through at the moment. His total net worth has significantly decreased by $1.1 billion over the past 90 days.

READ ALSO: BUA Foods Leads As Top Performing FMCG Stocks in Q1 2024; Other Consumer Goods Sector Surge, Defying Past Losses

According to reports, as of 6 May 2024, Rabiu’s net worth stood at $5.9 billion, but by 16 August 2024, his net worth had dived to $4.8 billion.

This decline in net worth is directly attributed to the value of the national currency, the Naira, relative to other currencies, especially the dollar, which is Nigeria’s preferred convertible currency.

Recall that on 6 May 2024, the naira was exchanged for N1,378.51 for a dollar, but by 16 August, the naira value had depreciated to N1,579.89. This currency value depreciation often reflects stock market price movements.

The fact of the matter is that there is a correlation between currency depreciation and stock market movements. This is one reason I have continued to advocate strengthening of the naira against other currencies. This is for the good of all segments of the country. For those involved in manufacturing, a strong naira makes their imported inputs cheaper; for the stock market, it drives a stronger pricing threshold and for the general population of consumers, it means more affordable goods.

READ ALSO: How CBN’s Delay In Providing Market Guidance Triggers Naira Fall – Report

I once again appeal to the authorities of the Central Bank of Nigeria, bank chiefs, investors, and the exclusive circle of the very rich to come together to save the naira. If not for altruistic reasons, at least they should do so to save their wealth and material value standings.

Nze Chidi Duru, OON

Chairman, Grand Towers Limited

Nze Chidi Duru

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