Abdul Samad Rabiu, Nigeria’s second-richest individual and Chairman of the BUA Group, an industrial and manufacturing conglomerate in Africa, has experienced a resurgence in his wealth, reaching an impressive net worth of $7 billion.
Over the past three months, Rabiu’s net worth has increased significantly, growing by $1.3 billion from $5.7 billion in July to the current $7 billion as of October, according to Forbes data.
Rabiu is 81% away from his $8.6 billion valuation recorded in April 2023, as recorded by TheTimes.
Why Abdul Samad Rabiu is $1.3 billion richer?
The primary catalyst behind this significant upswing in Rabiu’s wealth is the remarkable performance of his 96.29% stake in BUA Cement, the flagship company under the BUA Group umbrella.
The shares of this leading cement manufacturer have experienced a substantial surge, now trading at N105.8 ($0.137) at the time of this report.
This notable increase in BUA Cement’s shares closely follows the company’s strategic move to reduce ex-factory cement prices.
This shift in pricing strategy is expected to have profound effects on the competitive landscape within the industry, benefiting consumers and potentially reshaping market dynamics.
The reduction brings the ex-factory cement price for a bag of BUA Cement down to N3,500, underscoring the company’s commitment to competitive pricing.
While this move may impact the company’s revenue per tonne, it is poised to bolster BUA Cement’s market share.
With an expanded production capacity, BUA Cement is well-positioned to capture a more substantial share of the cement market, potentially resulting in a significant upswing in the group’s revenue and earnings.
Positive market sentiment regarding these prospects has significantly boosted BUA Cement’s share price on the Nigerian Exchange.
What you should know
In a previous report, TheTimes highlighted a significant decline in Abdulsamad Rabiu’s net worth in July, where he witnessed a substantial loss of $3 billion in just 60 days.
At that time, his net worth had dipped to $5.7 billion, a stark contrast to the $8.6 billion reported by TheTimes on April 29, 2023, as per Forbes Billionaire index data.
This drop in his net worth was primarily attributed to the devaluation of the Naira and the unification of the exchange rate system in June, an occurrence that also affected other prominent billionaires in Nigeria, including Aliko Dangote and Mike Adenuga.
In June alone, Rabiu reportedly lost approximately $2.73 billion due to the effects of the Naira unification.