SOLIDUPDATES - 15 Nigerian billionaires lose N799.1 billion in Q3 2022 as stock prices tanked

 Fifteen Nigerian billionaires have lost as much as N799.1 billion to the bearish performance of the Nigerian equities market in the third quarter of the year, as their collective wealth dropped by 11.9% in Q3 2022.

The aggregate wealth of these billionaires dropped from N6.74 trillion as of 30th June 2022 to N5.94 trillion by the end of September 2022. This is according to Nairametrics’ billionaire tracker, compiled based on the direct and indirect holdings of notable billionaires with stakes in listed companies in the Nigerian stock market.

The loss by the billionaires was due to the negative performance of the stock market. The All-Share index had dipped by 5.39% in Q3 2022, with almost all the indices (apart from the NGX Growth Index) printing negative returns in the period.

The Nigerian stock market suffered from huge selloffs following interest rate hikes by major central banks around the world including the Central Bank of Nigeria as the equities market lost about N1.4 trillion in market capitalization.

The rising rate of inflation in the country also contributed to the downturn recorded in the market, forcing investors to reallocate their investment portfolios in a bid to hedge against inflation or at the very least, put their monies in safe-haven assets.

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The billionaires included in this list are individuals with substantial stakes in the top 30 companies on the Nigerian stock market (NGX 30). It is also worth noting that the aggregate value considers the billionaires’ direct and indirect holdings in these companies.

Aliko Dangote – N441.66 billion

Africa’s richest man and Nigerian business magnate alongside his indirect investors lost an aggregate of N441.66 billion from his direct and indirect stakes in Dangote Cement and Dangote Sugar Refinery.

• Aliko Dangote owns 27.64 million units of shares directly in Dangote Cement, with 14.62 billion held indirectly through his company, Dangote Industries, which aggregates to a total holding of 14.65 billion units of shares (or 85.97% holdings) in the cement company.
• Also, the business mogul controls 0.05% of Dangote Sugar Refinery, through his direct holdings of 653.09 million units of shares, while he controls 8.12 billion units of shares in the company through Dangote Industries Limited, representing a total of 72.25% controlling right.
• The losses were a result of the decline in the unit share prices of both companies due to selloffs. Specifically, the share price of Dangote Cement dipped by 10.9% to close the quarter at N245 from N275 per unit recorded as of 30th June 2022.
• On the other hand, the share price of Dangote Sugar dipped marginally by 1.5% from N16.3 to N16.05 in the review period.

Abdulasamadu Rabiu – N336.82 billion

The Chairman of dual-listed BUA companies (BUA Foods and BUA Cement), Abdulsamadu Rabiu lost N336.82 billion from his holdings in the two companies in the third quarter of 2022

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• Rabiu owns 19.04 billion units of shares in BUA Cement directly and 645.66 million indirectly summing up to a 58.15% controlling right of the company.
• In the same vein, he owns 16.17 billion units of shares directly in the fast-moving consumer goods company, BUA Foods, with an additional 500.48 million units held indirectly through BUA Industries Limited.
• The share price of BUA Cement dipped by 27.7% in the period under review, losing N391.84 billion, which moderated a bit due to the 6% gain in BUA Foods, which fetched the billionaire a sum of N55.02 billion.
• Hence, Rabiu and his indirect investors lost an aggregate of N336.82 billion between July and September 2022.

Jim Ovia – N8.63 billion

Nigerian business mogul, Jim Ovia is the founder of Zenith Bank, one of the largest commercial banks in Nigeria. He lost N8.63 billion from his direct and indirect stake in the bank as the company saw its share price dip by 7.8% in Q3 2022.

• According to the Q2 2022 financial report of the bank, Jim Ovia has a total of 3.54 billion units of direct shares in the tier-1 bank and controls 1.52 billion units of shares indirectly through Institutional investors Ltd, Lurot Burca Ltd, Jovis Nigeria Ltd, Veritas Registars Ltd, and Quantum Zenith Securities Ltd.
• The bank’s stock price dipped from N21.7 to close the month of September at N20 per unit, representing a decline of 7.8% in the review period.

Olufemi Otedola – N2.79 billion

Femi Otedola lost an aggregate of N2.79 billion to the bearish movement in the stock price of FBN Holdings in the third quarter of the year. Mr. Otedola controls 10 million units of shares directly in the holding company and 1.98 billion units indirectly, representing 5.57% controlling interest.

• The indirect holdings controlled by Otedola in the company are held through Calvados Global Services Limited.
• The stock price of FBN Holdings declined by 12.1% from N11.6 recorded as of 30th June 2022 to close the quarter at N10.2 per unit of share.

Tunde Hassan-Odukale – N2.21 billion

Mr. Tunde Odukale, the managing director and CEO of Leadway Assurance Company saw his stake in FBN Holdings decline by N2.21 billion in the third quarter of the year after the stock price of the company declined by 12.1% in the review period.

• The breakdown of the businessman’s holdings in the premier financial institution shows that he controls 27.23 million units of shares directly and 1.54 billion indirectly 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, Leadway Pensure PFA.
• He controls 4.39% of the company’s holdings according to the Q2 2022 financial report of FBN Holdings.

Others 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)