AbdulSamad Rabiu’s net worth declines by $456 millionÂ

AbdulSamad Rabiu, Nigeria’s third-richest individual, saw his net worth decline by $456 million in a single day, bringing his total wealth to $4.6 billion.

The drop represents an 8.99% decrease in his fortune according to Forbes estimates.

Since the start of 2024, Rabiu’s net worth has fallen by $600 million from a previous valuation of $5.2 billion.

Rabiu is the founder of BUA Group, a Nigerian conglomerate with interests spanning cement production, sugar refining, and real estate. In early 2020, he merged his privately owned Obu Cement company with Cement Co. of Northern Nigeria, a listed firm he controlled.

The resulting entity, BUA Cement Plc, now trades on the Nigerian Stock Exchange, with Rabiu retaining a 98.2% stake. He also holds a 95% stake in BUA Foods, a publicly traded food conglomerate.

The billionaire businessman, the son of a prominent merchant, inherited land from his father but built his fortune independently. In 1988, he launched his own business importing iron, steel, and chemicals, eventually expanding into large-scale industrial ventures.

Some contextÂ

Despite the drop in Rabiu’s net worth, BUA Cement Plc reported strong financial results. The company’s profit before tax surged 48.20% year-on-year to N99.63 billion for the financial year ending December 31, 2024. However, soaring costs and foreign exchange losses tempered overall profitability.

According to its annual financial report, BUA Cement’s full-year revenue surged 90.54% year-on-year to N876.47 billion, largely driven by robust domestic sales of its bagged cement products.

Yet, the company faced steep cost pressures, with its cost of sales rising 108.74% year-on-year to N576.21 billion. The sharp increase, fueled by higher energy costs and operational expenses, reduced the company’s gross profit margin to 34.2%, a 14% decline.

• Operating profit: N144.3 billion (+93.17% YoY)
• Finance costs: N60.04 billion (+201.16% YoY)
• Net foreign exchange loss: N92.11 billion (+31.66% YoY)
• Profit after tax: N73.91 billion (+6.41% YoY)
• Earnings per share: N2.18 (+6.34% YoY)
• Total assets: N1.57 trillion (+29.17% YoY)

Despite revenue growth and an increase in operating profit, BUA Cement’s net profit margin fell to 8%, reflecting intensified cost pressures and a rising tax burden.

Cement production is an energy-intensive industry, and BUA Cement’s rising fuel, electricity, and plant maintenance expenses significantly impacted its bottom line. The company’s operating profit margin rose slightly by 1.38%, signaling resilience in its core business. However, without cost-containment measures, profitability could have been stronger.

The company’s sharp increase in foreign exchange losses and finance costs, which more than tripled year-on-year, further eroded earnings. Cash and cash equivalents also declined by 62.35% YoY to N84.75 billion, raising concerns about liquidity management.