As stock prices dropped in Q3 2022, 15 Nigerian billionaires lost N799.1 billion

• 15 Nigerian billionaires lost N799.1 billion
• The underperformance of the stock market
• The billionaire tracker by RNN

Due to the third quarter’s negative performance of the Nigerian stock market, 15 Nigerian billionaires lost N799.1 billion, or 11.9% of their total worth.

The combined fortune of these billionaires decreased from N6.74 trillion on June 30, 2022, to N5.94 trillion by September 30, 2022. The billionaire tracker by RNN, which is based on the direct and indirect holdings of well-known billionaires with investments in publicly traded companies on the Nigerian stock market, indicates as much.

The underperformance of the stock market was to blame for the billionaires’ loss. Almost all indices (apart from the NGX Growth Index) generated different negative returns during the third quarter of 2022, which contributed to the All-Share index’s decline of 5.39%.

READ MORE: Top 10 Richest Men in Nigeria (2022)

After major central banks around the world, including the Central Bank of Nigeria, raised interest rates, the Nigerian stock market experienced severe selloffs that resulted in a loss of market capitalization of about N1.4 trillion.

The market decline was exacerbated by the nation’s rising rate of inflation, which compelled investors to restructure their investment portfolios in an effort to protect themselves from inflation or, at the very least, place their money in safe-haven assets.

15 Nigerian billionaires lost N799.1 billion

The people on this list who are billionaires, own sizable investments in the top 30 Nigerian stock market companies (NGX 30). Notably, the total valuation takes into account the billionaires’ direct and indirect ownership interests in these businesses.

Aliko Dangote – N441.66 billion

The owner of the largest direct and indirect shares in Dangote Cement and Dangote Sugar Refinery, a Nigerian business magnate who is also the richest man in Africa, as well as his indirect investors, lost a combined total of N441.66 billion.

Aliko Dangote holds a total of 14.65 billion shares (or 85.97% of the firm) in Dangote Cement, of which he individually owns 27.64 million shares and indirectly owns 14.62 billion through his business, Dangote Industries.

Additionally, the business tycoon owns directly 653.09 million shares, or 0.05% of Dangote Sugar Refinery, and indirectly owns 8.12 billion shares, or 72.25% of the company, through his holding company, Dangote Industries Limited.

The decrease in both firms’ unit share values as a result of selloffs was what caused the losses. In particular, the share price of Dangote Cement fell by 10.9% to N245 per unit at the end of the quarter from N275 per unit as of June 30, 2022.
On the other side, during the review period, the share price of Dangote Sugar fell slightly by 1.5%, from N16.3 to N16.05.

Abdulasamadu Rabiu – N336.82 billion

The third quarter of 2022 has seen a loss of N336.82 billion for Abdulsamadu Rabiu, the chairman of the two BUA companies (BUA Foods and BUA Cement) that are dual-listed.

A total of 645.66 million shares are indirectly owned by Rabiu, giving him a 58.15% controlling interest in BUA Cement. Rabiu directly holds 19.04 billion shares of the corporation.
He also directly owns 16.17 billion shares of BUA Foods, a company that makes fast-moving consumer items, and indirectly owns another 500.48 million shares through BUA Industries Limited.

BUA Cement’s share price fell by 27.7% during the reviewed time, losing N391.84 billion. This decline was somewhat tempered by BUA Foods’ 6% rise, which brought the millionaire N55.02 billion.
As a result, between July and September 2022, Rabiu and his indirect investors lost a total of N336.82 billion.

Jim Ovia – N8.63 billion

One of the biggest commercial banks in Nigeria, Zenith Bank, was founded by Nigerian business magnate Jim Ovia. He lost N8.63 billion on his direct and indirect investment in the bank, which fell 7.8% in value in Q3 2022.

Jim Ovia owns 3.54 billion units of direct shares in the tier-1 bank, according to the bank’s Q2 2022 financial report, and 1.52 billion units of shares are under his indirect control via Institutional Investors Ltd, Lurot Burca Ltd, Jovis Nigeria Ltd, Veritas Registars Ltd, and Quantum Zenith Securities Ltd.
The bank’s stock price dropped from N21.7 to N20 per unit at the end of September, a reduction of 7.8% over the examined period.

Olufemi Otedola – N2.79 billion

In the third quarter of the year, Femi Otedola suffered a total loss of N2.79 billion due to the decline in the stock price of FBN Holdings. Mr. Otedola has a controlling interest of 5.57% in the holding firm, controlling 10 million shares personally and 1.98 billion shares indirectly.

Through Calvados Global Services Limited, Otedola’s indirect ownership in the business are held.
FBN Holdings’ stock price dropped by 12.1% from N11.6 on June 30, 2022, to complete the quarter at N10.2 per share.

Tunde Hassan-Odukale – N2.21 billion

When FBN Holdings’ stock price dropped by 12.1% during the review period, Mr. Tunde Odukale, managing director and CEO of Leadway Assurance Firm, saw his holdings in the company fall by N2.21 billion in the third quarter of the year.

According to the breakdown of the businessman’s holdings in the prestigious financial institution, he has direct control over 27.23 million shares and indirect control over 1.54 billion through Leadway Assurance Company, ZPC/Leadway Assurance Prem & Inv Colla Acct, Haskal Holdings Ltd, Leadway Capital & Trust, LAC Investments, Leadway Properties Investment, Leadway Holdings, OHO Investment, and Leadway Pensure PFA.
According to the Q2 2022 financial report of FBN Holdings, he owns 4.39% of the company’s holdings.

Other billionaires include

Herbert Wigwe – N1.82 billion (Access Bank)
Mike Adenuga – N1.38 billion (Conoil, Julius Berger, and Sterling Bank)
Tony Elumelu – N1.07 billion (UBA)
Gbenga Oyebode – N1.02 billion (Okomu Oil)
Wole Oshin – N780.5 million (Custodian Investment)
Eguasa P.A – N262.1 million (Okomu Oil)
Olakunle Alake – N245.1 million (Dangote Cement and Dangote Sugar Refinery)
Ifeoma Esiri – N154.4 million (Stanbic IBTC Holdings)
Ebenezer Onyeagwu – N136.2 million (Zenith Bank)
Adaora Umeoji – N119.9 million (Zenith Bank)