Nigerian billionaire businessman Abdul Samad Rabiu, regarded as one of Nigeria’s wealthiest individuals and a global Black billionaire, has suffered a significant setback, with his net worth plummeting by $2.7 billion.
According to Forbes, Rabiu’s net worth has decreased from $8.4 billion in January 2024 to $5.7 billion as of current report. This fall follows the recent devaluation of the Nigerian naira against the US dollar, which has impacted the market value of Rabiu’s publicly traded companies.
According to Forbes, the $2.7-billion fall places him as the world’s 488th richest individual, with the decline attributed to the appraisal of his assets caused by the Nigerian naira’s devaluation.
Rabiu’s investment portfolio includes a 96.3 percent share in BUA Cement, Nigeria’s second-largest cement maker, as well as a 99.8 percent holding in BUA Foods Plc, Rabiu’s unified food business.
Rabiu’s holdings in these enterprises decreased from $6.64 billion and $5.04 billion to $4.2 billion and $3.6 billion, respectively, as a result of recent devaluations. Marking a $4.6 billion drop amidst Nigeria’s currency troubles.
Nigeria has devalued its currency for the second time in eight months to address its confusing exchange rate system and encourage investment in its faltering economy.
The recent devaluation caused the naira to plummet about 40% to 1,482.57 to the dollar on the official market on Tuesday, before falling further to 1,531 on Wednesday, roughly matching the black market rate of N1,475 to the dollar.
According to Xe.com, a Canadian-based online foreign exchange tools and services provider, the naira is currently trading at 1,413.57 to the dollar on the official market, representing an almost 37 percent drop in the naira’s value year to date.
This new devaluation follows market-friendly changes imposed by Nigerian President Bola Tinubu in June 2023, which aim to eliminate the long-standing peg that artificially maintained the currency’s high value, resulting in the naira losing more than 67% of its value.