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Billionaire Watch

More gains than losses for Nigeria’s billionaires in Q2, 2020

The reasons for this could be the crisis that we saw in the global oil sector.

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After a dramatic first quarter which ended with the declaration of a nationwide lockdown, Nigeria’s billionaires and entrepreneurs entered Q2 2020 uncertain of what the pandemic held for them.

The lockdown and restrictions on inter-state movement had lots of implications for all sectors of the economy, including the consumer goods sector which was allowed inter-state movement. The cost of transportation increased, with implications on the end-cost of the goods.

Amidst all of these, stock trading continued with the usual rise and fall which characterises the bourse. This article looks at the gains and losses of Nigerian billionaires in the midst of the drama that became a feature of the new normal.

READ ALSO: Aliko Dangote Foundation Engages 54gene Laboratory to Conduct 1,000 COVID-19 Tests per Day in Kano

Interestingly, there are major gains across the different sectors except for the oil and gas sector where we see a dip. The reasons for this could be the crisis that we saw in the global oil sector. Let’s see the millions lost and gained.

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Jim Ovia

Jim Ovia is not only the founder of Zenith Bank Plc, he is also the largest individual shareholder with 3,546,199,395 direct shares and 1,513,137,010 indirect shares.

His net worth is not quite easy to ascertain, although the shares which he holds and controls in the listed bank are not hidden; hence our ability to ascertain his losses in the quarter.

The stock market opened on April 1 with a share price of N11.40 for Zenith bank shares. At this time, Ovia’s total 5 billion shares were worth N57 billion (N57,676,435,017).

After an interesting and highly positive quarter, the share price ended at N16.1 at the close of trading on June 30. With this, the worth of Ovia’s shares rose to N81.45 billion (N81,455,316,120.50).

READ MORE: Top 10 Stockbrokers trade N391.9 billion in Q1 2020 despite bearish market

The Delta-born billionaire gained an impressive N23.78 billion in the quarter.

Herbert Wigwe

Group MD/CEO of Access Bank, Herbert Wigwe directly owns 201,231,713 shares and indirectly controls 1,157,082,349.75 shares with the bank, summing up to 1,323 billion shares.

As at April 1, a unit of Access Bank share was worth N5.75, putting the worth of Wigwe’s 1.32 billion shares at N7.97 billion (N7,607,381,738.25).

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When there was a dip in share price in June, Wigwe purchased shares amounting to 7,546,458 shares, and this brings his indirect shares to 1.129 million shares.

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In addition to the 201,231,713 shares which he directly owns, Wigwe now has a total of 1.33 billion shares under his control.

READ ALSO: World Bank’s $2.5bn loan will hurt Nigeria’s economy – LCCI 

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At the close of the quarter, on June 30, Access Bank shares closed the trading day with a unit share price of N6.55.

The market value of Wigwe’s 1.33 billion shares (both direct and indirect) grew to N8.7 billion (N8,715,229,367).

Within the three-month period, Wigwe gained N1.1 billion (N 1,107,847,628.75) in his Access bank shares, from the appreciation in share price and gains on the additional shares he purchased.

Tony Elumelu

Founder and Chairman of United Bank for Africa Plc, Tony Onyemaechi Elumelu (TOE) had a total of 2.3 billion (2,304,211,118) units of shares – 190,100,234 direct and 2,114,110,884 indirect shares, valued at N11.4 billion (11,405,845,034.10) at the unit price of N4.95 on April 1.

He made a purchase of 45,378 additional shares between May and June to slightly increase his direct shares to 190,145,612, and total shares to 2,304,256,496 units.

UBA’s share price was N4.95 on April 1 and N6.25 at the close of trading on June 30; a major growth for TOE and his 2.3 billion shares.

The total worth of Elumelu’s shares grew significantly from N11.4 billion on April 1 to N14.4 billion (N14,401,603,100) on June 30.

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READ ALSO: Nigerian billionaires lose billions amid COVID-19 pandemic

The billionaire gained N2.9 billion (N2,995,758,065.9) by the end of the second quarter, from the increase in share price and gains on the additional units bought.

This does not take into cognisance, other gains or losses he may have in other listed companies where he holds some shares.

Austin Avuru

Standing odd among the billionaires is co-founder of Seplat, Austin Avuru, the only one who recorded a loss for the quarter.

Avuru indirectly owns about 58,970,463 indirect shares in the oil and gas company, after selling off his direct shares.

However, the company awarded Avuru some shares under the Long-Term Incentive Plan for Directors, as well as some under the deferred bonuses, totaling to 1,774,436 units of shares. This addition now brings his shares to 60,744,889 units.

A stock price of N544.5 as at April 1 showed that these stocks were worth N33 billion (N 33,075,597,506) at the start of the quarter.

On June 30, unit share price had plummeted to N386 and Austin Avuru’s shares were worth N23.44 billion (N 23,447,531,014).

He lost N9.6 billion (N 9,628,066,492 loss) in the quarter.

READ ALSO: Disclosed insider dealing seen impacting share prices.

Mike Adenuga

Chairman of Conoil Nigeria Plc, Mike Adenuga directly controls 516,298,603 units of shares, as well as 103,259,720 units of shares controlled through Conpetro Limited, making for about 74.4% of Conoil’s issued share capital.

Conoil’s stock prices started the period at N13.15 on April 1, and closed at N21.00 at the end of trading on June 30.

This trend puts the value of Adenuga’s 619.55 million shares at a market value of N8.14 billion (N8,147,191,947.45) on April 1, and N13 billion (N13,010,724,783.00) at the close of the quarter.
Adenuga gained N4.86 billion (N4,863,532,835.55) in the second quarter of 2020.

READ MORE: What you need to know about proposed tariff review by DisCos

Aliko Dangote

Nigeria’s richest man, Aliko Dangote owns both direct and indirect shares in the companies that make up the Dangote Group.

For Dangote Sugar, the share price opened the quarter at N8.90 and appreciated through the quarter to close at N12.00 on June 30.

The billionaire directly owns 653,095,014 shares and indirectly owns 8,122,446,281 shares through the Dangote Industries Limited in Dangote Sugar, summing up to 8.77 billion shares.

The upward trend in share price caused the worth of his shares in the company to rise from N78 billion (N78,102,317,525.50) on April 1 to N105 billion (N105,306,495,540.00) on June 30, 2020.

Aliko Dangote gained N27 billion (N27,204,178,014.50) in his investments in Dangote sugar in the period under review.
Dangote Cement share price also had an upward trend from N116.80 on April 1 to N127 at the end of June 2020.

As head of the Dangote Group, Aliko Dangote has 14.5 billion direct shares in the company and another 27 million share units which he indirectly controls through Dangote Industries Limited.

This brings the total shares under his control to N14.5 billion (14,527,958,138) units.

READ ALSO: These billionaires are set to cash out as banks pay interim 2019 dividends 

As at the beginning of the period, all 14.5 billion shares were worth N1.69 trillion (N1,696,865,510,518.40) at the market share price of N116.80. By the end of the period, the value had grown by N148 billion to N1.84 trillion (N1,845,050,683,526.00).

Adding his gains in Dangote sugar with that of Dangote Cement, we can see that the billionaire grew richer to the tune of N175 billion (N 175,389,351,022.10).

NASCON share price went up from N8.50 to N10.50 at the end of the period. However, the number of shares that Aliko Dangote owns in NASCON are not publicly available, so whatever gains he might have made from NASCON are not included in this figure.

Abdulsamad Rabiu

Abdulsamad Rabiu owns 19 billion (19,044,995,225) direct shares and 12,225,657,356 indirect shareholdings through 3 companies, totalling to 31.2 billion (31,270,652,581) units in BUA Cement.

BUA Cement stocks sold at N35.3 for a unit on April 1, and closed at N38.7 on June 30.

At the beginning of the quarter, Rabiu’s 31.27 billion shares (direct and indirect) were worth N1.1 trillion, and by the end of Q2, the value of the shares had risen well above N1.2 trillion.

Rabiu gained over N106 billion (N 106,320,218,775) in Q2, 2020.

Summary: Gains/losses (N’billion)

  • Austin Avuru – 9.628
  • Aliko Dangote – 175.389
  • Mike Adenuga – 4.863
  • Elumelu Tony – 2.995
  • Jim Ovia – 23.778
  • Herbert Wigwe – 1.107
  • Abdulsamad Rabiu – 106.32

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Note: Although these billionaires also have other private assets, and hold shares in some other listed companies, this article focuses on the major companies where they have recorded gains or losses.

Ruth Okwumbu has a MSc. and BSc. in Mass Communication from the University of Nigeria, Nsukka, and Delta state university respectively. Prior to her role as analyst at Nairametrics, she had a progressive six year writing career.As a Business Analyst with Narametrics, she focuses on profiles of top business executives, founders, startups and the drama surrounding their successes and challenges. You may contact her via [email protected]

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Billionaire Watch

Bill Gates holds far more cash than Nigeria’s foreign reserve

The 65-year-old billionaire holds $55.7 billion in the bank while data points that Nigeria’s foreign reserve holds $36.5 billion.

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Bill Gates, GDP, Unlike Nigerians, Bill Gates addresses Dangote differently 

Founder of the world’s most valuable software company, Bill Gates, currently has more cash in the bank than Africa’s biggest economy, Nigeria.

Data retrieved from Bloomberg showed that the 65-year-old billionaire holds $55.7 billion in the bank, while data retrieved from Nigeria’s apex bank points that the leading sub-Sahara economy holds $36.5 billion.

READ: Software bug brings down Microsoft Teams, Azure

  • Bill Gates co-founded Microsoft, the world’s biggest software maker, and owns about 1% of the Redmond, Washington-based company.
  • The majority of the philanthropist’s revenue is derived from Cascade Investment, a holding company that was created with gains from Microsoft stock sales and dividends.

READ: Huawei to rival Android with new operating system amidst US ban

What you should know

Based on an analysis of Bloomberg data, Bill Gates has earned more than $50 billion in stock and dividends, including a $3.3 billion payout from Microsoft in 2004, which he donated to his philanthropic foundation.

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He is currently the biggest shareholder of Canada’s biggest railroad operator, the Canadian National Railway.

  • Bill Gates made his wealth when he simplified the computer operating system by creating Microsoft Windows, the leading operating system in personal computers globally today.
  • For many years, Gates had been the world’s richest man. He now has a fortune of $134 billion with a 2021 gain of about $2.1 billion.
  • Bill Gates’s current wealth valuation can presently buy 72.3 million troy ounces or 2.39 billion barrels of crude oil.

READ: Oracle wins bid to acquire TikTok’s US operations after Microsoft offer was rejected

READ: Huawei staff members to get $286 million cash reward, here’s why 

Bottomline

For Bill Gates, although the metrics above reveal he holds a significant amount of his wealth in cash, it’s important to note he has exposure in real estate, stocks, and collectibles, thus helping his wealth to grow.

  • But beyond that, many market experts opine that the rationale behind keeping so many funds in banks amid rising inflation is to fund his philanthropic missions as he donates much of his wealth to causes that help better the world.

READ: Google set to extend footprints with acquisition of smartwatch company, Fitbit  

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Billionaire Watch

Dangote, Rabiu, Adenuga make top 10 on Forbes’ Africa billionaires list

Nigerian billionaire entrepreneurs; Aliko Dangote, Mike Adenuga and Abdul Samad Rabiu appear in the top spots of Forbes’ Africa billionaires list.

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Nigerians and South Africans dominate the top 10 spot on Forbes’ Africa billionaires list, which is an annual ranking of the richest Africans compiled and published by American business magazine, Forbes.

The 10 richest people in Africa according to Forbes have made their wealth sources including investments in diamonds, telecom, cement, sugar, media and mining amongst others. In total, they have a combined net of $59.8 billion.

The top 10 list doesn’t include a woman and is dominated by four South Africans and three Nigerians, with notable names like Aliko Dangote, Nicky Oppenheimer, Johann Rupert, Mike Adenuga, Abdul Samad Rabiu amongst the rest.

READ: Airbnb co-founder, Brian Chesky gains over $7 billion in just a few days

10. Koos Bekker

  • Net Worth: $2.8billion
  • Age: 68
  • Location: South Africa
  • Origin of wealth: Media and Investments
  • Company: Naspers

READ: World richest man, Jeff Bezos holds 5% of his wealth in cash

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According to Forbes, Koos Bekker is revered for transforming South African newspaper publisher, Naspers into an eCommerce investor and cable TV powerhouse. In 2019, Naspers put some assets into two publicly-traded companies, MultiChoice Group and Prosus which contain the Tencent stake.

9. Patrice Motsepe

  • Net Worth: $3billion
  • Age: 58
  • Location: South Africa
  • Origin of wealth: Mining
  • Company: African Rainbow Materials

READ: Facebook founder, Mark Zuckerberg, worth $104 billion keeps $2.3 billion in cash

Patrice Motsepe, the founder and chairman of African Rainbow Minerals, became a billionaire in 2008 – the first black African on the Forbes list. In 2016, he launched a new private equity firm, African Rainbow Capital, focused on investing in Africa.

8. Naguib Sawiris

  • Net Worth: $3.2billion
  • Age: 66
  • Location: Egypt
  • Origin of wealth: Telecom
  • Company: Orascom Telecom Holding

Naguib Sawiris is a scion of Egypt’s wealthiest family. His brother Nassef is also a billionaire. He built a fortune in telecom, selling Orascom Telecom in 2011 to Russian telecom firm, VimpelCom (now Veon) in a multibillion-dollar transaction.

READ: Many millionaires plan to buy Crypto before 2022

7. Isaad Rebrab

  • Net Worth: $3.2billion
  • Age: 76
  • Location: Algeria
  • Origin of wealth: Food
  • Company: Cevital Industrial Group

Issad Rebrab is the founder and CEO of Cevital, Algeria’s biggest privately-held company. Cevital owns one of the largest sugar refineries in the world, with the capacity to produce 2 million tons a year. Cevital owns European companies, including French home appliances maker Groupe Brandt, an Italian steel mill and a German water purification company.

READ: Netflix gains 17% after beating investors expectation

6. Abdul Samad Rabiu

  • Net Worth: $5.5billion
  • Age: 60
  • Location: Nigeria
  • Origin of wealth: Cement, Sugar
  • Company: BUA Group

Abdulsamad Rabiu is the founder of BUA Group, a Nigerian conglomerate active in cement production, sugar refining and real estate. In early January 2020, Rabiu merged his privately-owned Obu Cement company with listed firm Cement Co. of Northern Nigeria, which he controlled. The combined firm, called BUA Cement Plc, trades on the Nigerian stock exchange; Rabiu owns 98.5% of it. Rabiu, the son of a businessman, inherited land from his father. He set up his own business in 1988 importing iron, steel and chemicals.

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5. Mike Adenuga

  • Net worth: $6.3billion
  • Age: 67
  • Location: Nigeria
  • Origin of wealth: Telecom, Oil
  • Company: Globacom

Mike Adenuga, Nigeria’s second richest man, built his fortune in telecom and oil production. His mobile phone network, Globacom, is the third-largest operator in Nigeria, with 55 million subscribers. His oil exploration outfit, Conoil, operates 6 oil blocks in the Niger-Delta.

4. Johann Rupert

  • Net Worth: $7.2billion
  • Age: 70
  • Location: South Africa
  • Origin of wealth: Luxury goods
  • Company: Compagnie Financiere Richemont

Johann Rupert is chairman of Swiss luxury goods firm, Compagnie Financiere Richemont. The company is best known for the brands Cartier and Montblanc. It was formed in 1998 through a spinoff of assets owned by Rembrandt Group Limited (now Remgro Limited), which his father formed in the 1940s. He owns a 7% stake in diversified investment firm Remgro, which he chairs, as well as 25% of Reinet, an investment holding co. based in Luxembourg.

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3. Nicky Oppenheimer

  • Net Worth: $8billion
  • Age: 75
  • Location: South Africa
  • Origin of wealth: Diamonds
  • Company: De Beers Group

Nicky Oppenheimer, the heir to his family’s fortune, sold his 40% stake in diamond firm, DeBeers to mining group, Anglo American for $5.1 billion in cash in 2012. He is the third generation of his family to run DeBeers, and took the company private in 2001. For 85 years until 2012, the Oppenheimer family occupied a controlling spot in the world’s diamond trade.

2. Nassef Sawiris

  • Net Worth: $8.5billion
  • Age: 60
  • Location: Egypt
  • Origin of wealth: Constructions, Investments
  • Company: Orascom Construction

Nassef Sawiris is an investor and a scion of Egypt’s wealthiest family. His most valuable asset is a nearly 6% stake in sportswear maker Adidas. In December 2020, he acquired a 5% stake in New York-listed firm Madison Square Garden Sports, owner of the NBA Knicks and the NHL Rangers teams. He runs OCI, one of the world’s largest nitrogen fertilizer producers, with plants in Texas and Iowa; it trades on the Euronext Amsterdam exchange.

1. Aliko Dangote

  • Net Worth: $12.1billion
  • Age: 63
  • Location: Nigeria
  • Origin of wealth: Cement, Sugar
  • Company: Dangote Group

Aliko Dangote, Africa’s richest person, founded and chairs Dangote Cement, the continent’s largest cement producer. He owns 85% of publicly-traded Dangote Cement through a holding company. Dangote Cement produces 45.6 million metric tons annually and has operations in 10 countries across Africa. Dangote also owns stakes in publicly-traded salt and sugar manufacturing companies. Dangote Refinery has been under construction since 2016 and is expected to be one of the world’s largest oil refineries once complete.

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Billionaire Watch

Top 5 billionaires lost $8 billion in a day

The top 5 billionaires, as a group did not do well at the last trading session of the week amid an era showing the U.S dollar rebounded.

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Wealth of world’s billionaires hits $10.2 trillion

The top 5 billionaires on planet earth had an unimpressive showing at the most recent trading session.

The top 5 billionaires most recent daily loss stood at $7.754 billion

Elon Musk

The world’s richest person printed the highest wealth loss for the day as Elon’s wealth dropped by $4.28 billion. His wealth is now estimated to be worth $197 billion.

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Tesla suffered significant losses at Friday’s trading session, on recent reports revealing its Model 3 is now only the fourth-best selling pure electric vehicle (EV) in Europe.

READ: Elon Musk’s wealth jumps in 2021, more than top 5 billionaires combined

Investors got alarmed that Tesla got outpaced by Renault and Volkswagen in an important car market like Europe.

  • Elon Musk, who a few weeks ago, surpassed Jeff Bezos to become the world’s richest person, is now the first person in modern history to ever surpass a wealth valuation of over $200 billion.
  • However, for the long term, Stock experts anticipate that a Democratic-controlled U.S Senate is bullish for Tesla, on the bias that there would be more pro-renewable investments, at least for the next few years.

Jeff Bezos

Jeff Bezos, the current CEO, and founder of Amazon is presently valued at about $182 billion, printing a wealth drop of $1.26 billion for the day.

  • Investors went short on the trillion-dollar valued company at its most recent trading session, taking into consideration that the tech company had become too powerful, particularly when Amazon dropped Parler, a social network that gained President Trump’s die-hard supporters after Twitter suspended his account.

READ: 5 habits of Nigeria’s business billionaires you should emulate

Bill Gates

In the third position is another popular tech genius, Bill Gates, the founder of the most valuable software company, Microsoft.

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For many years, Gates had been the world’s richest man. He now has a wealth fortune of $132 billion, as recent data revealed it dropped by $814 million for the day.

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READ: World richest man, Jeff Bezos holds 5% of his wealth in cash

Bernard Arnault

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Europe’s top entrepreneur and French celebrated fashion icon, Bernard Arnault, is fourth on the list with a fortune now estimated to be around $109 billion, with its most recent drop by $3.55 billion.

  • He is the only billionaire on the top 5 that isn’t from the tech ecosystem.
  • Most of his wealth comes from his controlling stake of LVMH, controlled through his holding known as Christian Dior.

READ: Billionaires worth over $100 billion made $270 billion in 2020

Mark Zuckerberg

Facebook’s founder, Mark Zuckerberg is fifth on the list, with a fortune estimated to now be valued at $95 billion, on the account, he was the only billionaire in the top 5 list that had a wealth gain for the day.

  • His most recent wealth daily gain stood at $2.15 billion amid an era of reports revealing global investors are weighing significantly on Facebook amid antitrust and privacy concerns.

READ: Facebook founder, Mark Zuckerberg, worth $104 billion keeps $2.3 billion in cash

Bottom line

The top 5 billionaires, as a group, infamously did not do well at the last trading session of the week amid an era showing the U.S dollar rebounded strongly.

Growing concerns that the leading global technology brands have grown too powerful has led some investors to trim their bullish bets cumulatively on the top 5 billionaires’ businesses.

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