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Nigerian Stocks Lift Top Billionaires’ Fortunes to $23.9b

Impressive gains by Nigerian stocks lifted the fortunes and global ranking of Nigerian billionaires in 2020. In a year ravaged by COVID-19 pandemic, latest ranking by Forbes showed that three Nigerian dominated the African billionaires’ list.

President, Dangote Group, Alhaji Aliko Dangote remains Africa’s richest person with a net worth of $12.1 billion. Dangote’s wealth came mainly from its cement and sugar businesses, which are all quoted on the Nigerian Stock Exchange (NSE). Dr. Mike Adenuga, owner of Globacom and majority core investor in Conoil Plc, occupied the fifth position with networth of $6.5 billion. Alhaji Abdul Samad Rabiu, the majority core investors in BUA Cement Plc, followed in the sixth position with a networth of N5.5 billion.

The total networth of $23.9 billion by the three Nigerian billionaires was the largest concentration by any country within the top 10 list.

Dangote’s Dangote Cement, Dangote Sugar Refinery and NASCON Allied Industries; Adenuga’s Conoil and Rabiu’s BUA Cement are all quoted on the NSE, which posted a world-leading return off 50.03 per cent in 2020.

Globally, Elon Musk of Tesla became the world’s richest person, overtaking Jeff Bezos of Amazon due to surging share price of Tesla.

According to Forbes, Africa’s 18 billionaires are worth an average $4.1 billion, 12 per cent more than a year ago, driven in part by Nigeria’s surging stock market with Aliko Dangote retaining his place as the continent’s richest at $12.1billion, up by $2 billion from last year’s list thanks to a roughly 30 per cent rise in the share price of Dangote Cement, by far his most valuable asset.

“The biggest gainer in Africa this year is another Nigerian cement and manufacturing tycoon, Abdul Samad Rabiu of BUA Group. Remarkably, shares of his BUA Cement PLC, which listed on the Nigeria Stock Exchange in January 2020, have doubled in value in the past year. That pushed Rabiu’s fortune up by an extraordinary 77%, to $5.5 billion,” Forbes stated.

Unlike last year, there are no women from Africa on this year’s list with Forbes calculating that the fortune of Folorunsho Alakija of Nigeria, who owns an oil exploration company, dropped below $1 billion due to lower oil prices.

“The 18 billionaires from Africa hail from seven different countries. South Africa and Egypt each have five billionaires, followed by Nigeria with three and Morocco with two. Altogether they are worth $73.8 billion, slightly more than the $73.4 billion aggregate worth of the 20 billionaires on last year’s list of Africa’s richest people,” Forbes stated.

On the method of selection, Forbes explained that its list tracks the wealth of African billionaires who reside in Africa or have their primary business there, thus excluding Sudanese-born billionaire Mo Ibrahim, who is a United Kingdom citizen and billionaire London resident Mohamed Al-Fayed, an Egyptian citizen. However, Strive Masiyiwa, a citizen of Zimbabwe and a London resident, appears on the list due to his telecom holdings in Africa.

“We calculated net worths using stock prices and currency exchange rates from the close of business on Friday, January 8, 2021. To value privately held businesses, we start with estimates of revenues or profits and apply prevailing price-to-sale or price-to-earnings ratios for similar public companies. Some list members grow richer or poorer within weeks-or days-of our measurement date,” Forbes stated.

The Forbes yearly list of billionaires is the world’s most comprehensive billionaires ranking in the world and is calculated based on net worth using stock prices and currency exchange rates from the close of business on Friday, January 8, 2021.

To value privately held businesses, Forbes starts with estimates of revenues or profits and apply prevailing price-to-sale or price-to-earnings ratios for similar public companies. Some list members grow richer or poorer within weeks-or days-of Forbes measurement date. Source; thenation.net

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