According to a report by
Forbes, Dangote, Tony Elumelu and Jim Ovia lost a lot of money as a result of the devaluation of Naira. The Forbes report by
Mfonobong Nsehe below...
A few weeks ago, the Governor of the Central Bank of Nigeria, Godwin
Emefiele, announced a nearly 10% devaluation of the Naira, Nigeria’s
currency, after admitting that a plunge in world oil prices and
dwindling dollar reserves were making it difficult to defend the value
of the currency. The Naira is now trading at N187 to $1, compared to
N165 in November. In dollar terms, the devaluation has knocked more than
$40 billion off the value of Nigeria’s economy.
Dangote is the biggest loser among Nigeria’s richest
people as the Naira’s slump, coupled with falling stock prices, has
erased more than $7.8b of his fortune since Feb, when Forbes locked in the values for its annual ranking of the World’s Billionaires.
Dangote was worth $25 billion at the time; as of market close on
Tuesday, he’s worth $17.2 billion. More than half of the drop in his
fortune has happened since early November. As of Nov. 7, Dangote was
worth $21.6 billion, $4.4 billion more than now.
Here’s why: The last few weeks have been a bit of a disaster for many
companies listed on the Nigerian Stock Exchange. Several blue-chip
stocks such as Dangote Cement, Zenith Bank, Transcorp and United Bank of
Africa among several others have hit one-year-lows as a result of the
fall in oil prices, a general uncertainty regarding the 2015 general
elections, Central Bank regulatory headwinds, and weak earnings from
large cap companies. These have all contributed toward putting
naira-denominated assets including equities at risk.
After Dangote, the second biggest loser among Nigeria’s ultra-rich is Tony Elumelu,
the Chairman of Heirs Holdings, an investment company. Heirs Holdings,
which is wholly-owned by Elumelu, is the controlling shareholder in
Transcorp, a publicly-listed conglomerate with interests in power
production, hotels and agriculture. Transcorp’s current market
capitalization is now $700 million, down from $1.4 billion at the
beginning of November. Heirs Holdings has lost an estimated $345 million
in paper value on Transcorp, and its stake in the company as at Monday
is now worth roughly $400 million, down from $700 million. Elumelu’s
investments in other listed companies like UBA, Africa Prudential PLC
and UBA Capital have shed a little over $27 million in value.
Other big losers include Nigerian multi-millionaire banker Jim Ovia,
a co-founder of Zenith Bank. The value of his stake in the financial
services provider is $240 million as of late Monday, down from more than
$350 million last month. He owns a 9% stake in the bank.
Wow, that means we should expect a Massive increase in his already dropped Cement Price?? Hmmm.. Its Business, you gain to loose..
ReplyDelete.
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.Disclaimer:: Raise Your Words, Not Your Voice. It Is Rain That Grows Flowers, Not Thunder..
O my beloved country, when will things get better. Inflation in 2015 is inevitable.
DeleteOne and Only Ada David Omobabalanu
Wat a lost
DeleteOh my!!! Datz in dollars!!!!! Price of dangote cement, salt, spaghetti will increase nw! To make up for d loss
ReplyDeleteDats a whole lot
ReplyDeleteThat's twice what Adenuga is worth!
DeleteHim get
ReplyDeletePathetic
ReplyDeleteNot a good one at all,
ReplyDeleteEhya! Too bad for him and others tho #onelovefromSnow#
ReplyDeleteAwwww imagine how this sh*t will hit the common man!
ReplyDeleteThat's none of my business...... He is making his money am making mine
ReplyDeleteSUPERSLIMC4
I tire oh
DeleteI tire oh
DeleteGEJ shld just go! Him bad luck too much. Shuu!
ReplyDeleteThat's a whole lot of money m sure he will make it back
ReplyDeleteMeanwhile email me to know how u can enlarge your joystick
2014 seem to be a bad year for all of us,but I know Alhaji will overcome all this lost,I just hope he learnt not to be emotive about business. When he was cutting down on cement price over GEJ ,I knew it was a bad move,but who am I to tell Seriki Kudi that he was wrong, either way I am very optimistic that Alhaji would get through this,cause the more he falls,the higher he bounce back.
ReplyDeleteShege...hand don dey catch em one by one....i neva knew it wil affect dem ooo lols
ReplyDeleteshould we start crying now? maybe
ReplyDeleteChei! He won't give me the money he promised me again o! Chei!
ReplyDelete@gr8akin
Its necessary they have excess..let them lose a little
ReplyDeleteBig man big trouble
ReplyDelete* * commenting live from river ethiope **
RICH ALSO CRY.....SURE IT DOESNT CHANGE HIS WORTH
ReplyDelete..........
AIRTEL BRING 3G TO H5
Its necessary they have excess..let them lose a little
ReplyDeleteAfricans shld be wise. The western world do not want us to anywhere close to them. This is their doing. We have God given natural resources (exess). We shldnt be lacking in anything if we know what the oyibos are up to and what they are made of.
ReplyDeleteThis is the absolute truth..but no matter what no weapon of the west form again Africa and Nigeria will prosper
DeleteChoi wat a pity
ReplyDeleteis he complaining? once there is life there is money too!
ReplyDeleteTheir own better. Me I don't even have transport fare to go out n look for work
ReplyDeletelazy man.go and work hard
DeleteOh sorry sir,just don't know wt 2 say,bt its nt easy loosing a whole amount of money,God will refund you double,even more than wt u could ever imagine,u ve touched lives Alhaji.
ReplyDeleteTHEY HAVE CONQUERED MONEY.MONEY CANNOT CONQUERE THEM JOR..LINDA YOU FEEL ME?...AKA...NEVER DRY
ReplyDeleteMy dear that is ehn...they have indeed conquered money! The white man will continue to struggle to bring us down but they shall be frustrated with no success, ebola no do them..
DeleteHmm, that's bad news play big, loss big.
ReplyDeleteHe's a rich man so I believe its a matter of short time before he recovers his lost
ReplyDelete¤
¤¤¤GUTS OVER FEAR¤¤¤
¤
¤¤¤QUEENMAYA¤¤¤
Eya!.. Rich men cry too.
ReplyDeleteThis is dedicated to Linda.
ReplyDeletehttp://www.hulkshare.com/jesci/i-need-you-mp3
All tanx to the wrong timing of the devaluation! A question I wud love to ask Nigerians is that wht has been happening to the excess on income generated from crude oil as a result of lower benchmark for previous our budgets.
ReplyDeleteLmao!! The ECA is empty! #fact. They have cleaned out the so much so that the state government were owed arrears on their FAAC even before the crash of the price of crude! If this man comes back as president, I will know yes...Nigerians deserve the leadership they get! Not super keen on GMB, but he is the lesser of two evils.
DeleteEven me my 1000naira stock disappeared.
ReplyDelete@lwkmd_naija
These naira devaluation really affecting the economy
ReplyDelete$.
$.
@Mr Endowed via Lumia phone
jeez we are gettin worst oh. Where is okonjo?
ReplyDeleteHim get de bar
ReplyDeletehmm what happen nah
ReplyDeleteWhy won't foreign investors run? If not self imposed inflation,its borrowed inflation with the consequent devaluation of the naira that comes with it.I pity the likes of Dangote who are bent on improving the fortune of this country via investment.The govt needs to come up with epic policies !
ReplyDeleteNa wah ooo
ReplyDeleteStory for d gods
ReplyDeleteStory for olokun
ReplyDeleteThey'll definitely recoup their losses.
ReplyDeleteJesus is Lord.
Before y'all staart yelling that it's the Nigerian economy! Nah oil and has prices dropped, and Becus Nigeria is one of the OPEC countries of cus we would be affected! So until Saudi Arabia decides to stop over producing, gas prices will keep going down! Not like I'm complaining at 2 dollars a gallon! It is well
ReplyDeleteErrr...honey...IT IS THE NIGERIAN ECONOMY! If they were lazy enough not to think diversification all these years then yes they are to blame! This oil is a diminishing resource and I think their lazy asses either forget or are just plain myopic! I can bet on the latter. Meanwhile, enjoying this $2 gas as well ;).
DeleteLol. Wat a lost after donating so much 4 oga jona 4 campaign
ReplyDeleteLol. Wat a lost after donating so much 4 oga jona 4 campaign
ReplyDeleteeyah sorry o Sir
ReplyDeleteBig money. Bigger problems. I wonder when our currency will have a little value and dignity again.
ReplyDeleteThis man does not suppose to deserve this mess
ReplyDeleteSeek What
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That's a great loss, really bad for him
ReplyDeleteThis exchange rate ish is becoming serious! The government should look into this matter before it becomes worse than it is now
ReplyDeleteYou shall recover all
ReplyDeleteOk o! We are moving 4ward! This xmas is so not merry! 187naira 2 a dollar! SMH
ReplyDeleteIts not like the devaluation of the Naira will make any difference among majority of Nigerian who are already living well below the poverty line. The only people who will suffer the loss are the billionaire. And maybe that is a good thing. They could use a little discipline and reality. The whole world is suffering from the oil crisis, but developing countries like Nigeria will be the ones who feels the pinch the most. Had Nigerian government been responsible enough as opposed to looting our resources for their own personal gain, our economy would have been able to withstand this ongoing global oil crisis. Its a crisis because even Canada(that also produce oil) is suffering the pinch also. Dangote and the rest billionaires will be just fine. I'm only worried about people already struggling to get their salaries paid when the oil crisis was not an issue. What will they do now? How will they survive? Nigerian leaders are just evil. They have no conscience. Otherwise, how can you treat your people the way they treat us? SMH
ReplyDeleteUhm, what does this have to do with an entrepreneur that worked his way to the top? Show a lil sympathy when something unfortunate happens to someone, billonaire or not! Some Nigerians...smh!
Deletethe nation have lost more than usd50 billion while jona only borrowed usd1 billion. Wot a shame - international borrowing usually comes with devaluation of d country currency. Naira have never been so under valued. Wot a shame, jona is not fit period
ReplyDeletesales job available. for Port-Harcourt residents only. Minimum qualificatn is S.S.C.E.Send your c.v to ceeveeroom@gmail.com immediately.
ReplyDeleteJonathan will replace the money.
ReplyDeleteJonathan will replace the money.
ReplyDeleteNigeria has started a very bad practice of governance.
ReplyDeleteI don't know why they keep slumping this. It has affected so many businesses around the nation since they started this rubbish.
Just like I do say in my articles; and most of my subscribers sometimes reason with me.
"If you were given a one day opportunity to rule this country, how and what would you do?" Most of them said different things; yes, because just as we are different human being so also our minds.
But to be sincere, we have to do the right thing.
Nigeria has started a very bad practice of governance.
ReplyDeleteI don't know why they keep slumping this. It has affected so many businesses around the nation since they started this rubbish.
Just like I do say in my articles; and most of my subscribers sometimes reason with me.
"If you were given a one day opportunity to rule this country, how and what would you do?" Most of them said different things; yes, because just as we are different human being so also our minds.
But to be sincere, we have to do the right thing.
Nigeria has started a very bad practice of governance.
ReplyDeleteI don't know why they keep slumping this. It has affected so many businesses around the nation since they started this rubbish.
Just like I do say in my articles; and most of my subscribers sometimes reason with me.
"If you were given a one day opportunity to rule this country, how and what would you do?" Most of them said different things; yes, because just as we are different human being so also our minds.
But to be sincere, we have to do the right thing.
Now, you see what it has caused Dangote? That was just the one you heard; there are many other people who also suffered from this slumping of naira to dollar.
Quite a lot.
ReplyDeleteNa was oh! Pele
ReplyDeleteWow that's huge amount of money no wonder the price of cement increase from 1500 to 1950 Naira. Well is good for you because you are also a member of corrupt PDP member. This Man gave GEJ 10Million naira just to support GEj so na God catch you for us. @YachamBulus
ReplyDeleteIts a 'lie'!
ReplyDeleteNigeria is still the biggest economy in Africa while Dangote remains the richest billionaire in the continent.
Dangote, don't mind haters, na-you biko.
K.Adebayo
Kolacarinae@yahoo.com
Why should dangote appear in GEJ's fund raiser. When Gej incompetence has largely affected him negatively...
ReplyDeleteWish you guys will spend some time reading about the world economy in between stalking Davido and Tiwari Savage ' s twitter.
ReplyDeleteOil prices are crashing and nigeria is 80-90% dependent on oil. USA, used to be our reliable buyer but they've not bought a single barrel since June since they are also producing. We are trying to sell to India and China since we've lost the USA market but Saudi Arabia is competing severely with us by offering oil discounts per barrels. Nigeria is now experiencing a trade deficit and a budget deficit meaning we have more naira going after the dollar so naturally dollars will increase relative to the naira. Government has been trying to defend the value of the naira by releasing reserves, but unfortunately we don't have a lot of reserves, at is current rate we will deplete our reserves in no time.
Central bank has also increased prime rate of borrowing and saving to encourage investors to save in naira but that means all the loans tied to prime will also increase and when I mean loans that includes all business and personal loans. Therefore investors are running away with forex and the market is tanking that's why you see Dangote ' s net worth disappearing. How does this affect you? Prices of everything will increase in multiple folds, government will remove petrol subsidy since they simply can't afford it. Your current savings will get worthless as the naira depreciates in value. Who knows what the price of basic food and shelter will become.
Government is still deluded by calculating a budget based on oil price of $65 when in actuality the price of a Barrel of bonny light is now way below $65. In order to plug that deficit they will look for more opportunities to make money like taxing Nigerians to death. Tariffs for everything imported will keep increasing, I am sure you've all noticed the increase for importing cars by now and generally consumers will suffer.
I haven't even factored how our unique corruption further complicates this mess. My fellow Nigerians welcome to the late 80s. We've officially entered an austere period.
Merry Christmas everyone.
Nigeria should better do something b4 .......
ReplyDeleteSometimes in order to move foward you have to take 2 steps backward.... @Nigeria of my dreams, we will grow stronger....
ReplyDelete@MrDanas says so
Rich people know how to make money, it's their hobby. I just pity naija. Thats why we need to vote out corruption, at least, we can start from there. We've tried PDP, nothing to show. Let's try APC, hopefully, we'll get there.
ReplyDeleteWe deserved all this mess, I know it will surely get messier in days, weeks and months ahead.
ReplyDeleteI know for sure something like this will happen, just because of the incredible loss of value which is happening to naira. Dangote will surely get up to it cuz he is a great business tycoon.
ReplyDeleteCuratainment
One of those things life has to offer...
ReplyDelete