About 12 Nigerians currently control one-eighth
(1/8) of the country’s gross domestic product
(GDP), a survey conducted by LEADERSHIP
Weekend has revealed. In the same way, the 10
most capitalised companies listed on the Nigerian
Stock Exchange (NSE) make up over one-fifth of
the country’s economy with many of the major
shareholders drawn from the ranks of the 10
richest Nigerians.
An analysis of the Forbes 50 Richest Africans’
List indicates that the 12 Nigerians listed therein
currently have an estimated total net-worth of
$33.68 billion (N5.38 trillion) which represents
12.8 per cent or about one-eighth of Nigeria’s
GDP figure put at $262.6 billion (N42 trillion) as
at December 2012.
The 10 most capitalised companies, on the other
hand, together are valued N9.35trn ($58bn).
Curiously, LEADERSHIP Weekend investigation
shows that none of the top 10 capitalised
companies is an oil company, since oil exploration
and drilling companies are not quoted on the
NSE. It is estimated that more than half of the
country’s 12 wealthiest individuals made their
money and are still making money from the oil
industry.
However, with the envisaged rebasing of Nigeria’s
GDP, it is expected that the country’s GDP figure
will increase, thus resulting in a drop in the
percentage of the nation’s economy controlled by
these individuals and companies.
According to the Forbes African 50 Richest list
released in November 2013, Aliko Dangote is
Africa’s richest man with a net worth of $20.8
billion. This shows that Dangote alone controls
about 8 per cent of the nation’s GDP while the
remaining 11 people control only 4.8 per cent of
the GDP.
But Dangote could see his share of the country’s
wealth reduced to about 5 per cent after the base
year for measuring the size of the economy is
brought forward from the 1990s to better reflect
companies that have sprung up in the last two
decades. Economists expect the National Bureau
of Statistics to put the GDP at around $400bn
when NBS finally comes out with a figure.
One of Dangote’s companies, Dangote Cement,
also comes tops as the most capitalised
company with a market value of N3.92 trillion
($24.5bn), giving it close to 10 per cent of the
GDP or about 6.25 per cent after rebasing.
As a subsidiary of the Dangote Group, the cement
company got listed on the NSE in October 2010.
The company announced a gross revenue of
N103.03 billion with a profit of N54 billion as at
September 30, 2013.
Telecom, banking and oil investor Mike Adenuga
ranks fifth on the Forbes Africa Rich List and
second in Nigeria with a net worth of $4.6 billion.
This gives him 1 per cent
None of his companies, however, is on the top 10
of the most capitalised on the stock exchange
with Globacom, his telecommunication company,
the only major one that is completely privately
owned and not listed on the exchange. The 61-
year-old who hails from Ijebu, Ogun State, built
his fortune in oil production and telecoms.
His mobile telecom outfit, Globacom, has over 25
million subscribers in Nigeria and the Republic of
Benin. He also owns Conoil Producing, a large
indigenous oil exploration company.
Having beaten Oprah Winfrey to be the richest
black woman, Folorunsho Alakija, became
Nigeria’s first female billionaire and the 13th
richest African, thanks to a lucrative oil-producing
asset with a total net worth of $2.5 billion. This
oil giant contributes roughly 0.95 per cent to the
GDP which could come to roughly 0.625 per cent
when the NBS announces its new GDP figures.
After working as a secretary in a Nigerian
merchant bank in the 1970s, Alakija quit her job
to study fashion designing in England. She
subsequently founded Supreme Stitches, a
Nigerian fashion label that caters to upscale
clientele, including Maryam Babangida, the late
wife to Nigeria’s former military president,
Ibrahim Babangida. The president awarded her
company, Famfa Oil, an oil prospecting licence,
OML 127, one of Nigeria’s most prolific oil blocks.
Abdulsamad Rabiu joins the ranks of Africa’s
richest and the world’s billionaires for the first
time based on success at his BUA Group, whose
biggest businesses are sugar refining and cement.
BUA Group’s annual revenues are estimated at $2
billion. The group also does business in real
estate, steel, port concessions, manufacturing, oil
and gas and shipping.
After calculating Rabiu’s worth, Forbes magazine
said his “stake in his commodities and cement
empire, plus his real estate holdings in South
Africa and London, are worth $1.2 billion, up from
$670 million a year ago, primarily due to better
information on Rabiu’s holdings and the revenue
of his companies.” While not all his investments
are traced to Nigeria, with $1.2bn to his name,
Rabiu gets to have a say in how the country’s
economy is managed, at least a 0.45 per cent and
maybe 0.3 per cent after rebasing.
Delta State-born Nigerian banker Jim Ovia ranks
the 28th richest African and fifth richest Nigerian.
He founded the Zenith Bank Group, one of
Nigeria’s largest financial services groups, with a
market capitalisation of more than $4.5 billion
(N728.4bn).
With a net worth of $900 million, Ovia is Zenith
bank’s largest individual shareholder, with a 9 per
cent stake. This gives Ovia a 0.34 per cent share
of the current GDP and about 0.225 per cent of
the expected figure. The bank on the other hand
has a 1.72 per cent share of $262bn official GDP
figure and could come down to 1.125 per cent
after rebasing.
Ovia owns dozens of prime properties in pricey
Nigerian neighbourhoods like Victoria Island and
Ikoyi. Ovia also runs Visafone, a mobile telecoms
outfit, and is partnering with Marriott to build a
new five-star hotel in Lagos.
Retired Nigerian general and former defence
minister Theophilus Danjuma ranks the sixth
richest in Nigeria and 29th in Africa with a net
worth of $700 million. His share of GDP stands at
0.267 per cent and could later become 0.175 per
cent. He chairs South Atlantic Petroleum
(Sapetro), a Nigeria-based upstream oil and gas
exploration and production company which was
awarded an oil block (OML 130) by the Sani
Abacha regime in the 1990s, and in 2006
Danjuma sold a 45 per cent stake to Chinese oil
company CNOOC for $1.75 billion, retaining a 5
per cent stake. In 2011, Danjuma said he had
$500 million left from selling the block to CNOOC.
He donated it to the TY Danjuma Foundation, a
philanthropic organisation that is catering to
educational, health and microcredits causes for
the downtrodden. Danjuma also owns real estate
in Lagos, including SAPETRO Towers.
Oba Otuddeko, industrialist and former president
of the Nigerian Stock Exchange, who chairs
Nigeria’s Honeywell Group, with interests in oil
and gas, flour milling, real estate and marine
transportation, is next after Danjuma on the
Nigerian list but ranks 33rd richest in Africa with
a net worth of $575 million. Honeywell Flour is
publicly traded. He also owns a minority stake in
mobile phone giant Bharti Airtel’s Nigerian
operations, and a stake in Radisson Blu, a
sprawling oceanfront hotel in Lagos, Nigeria.
Hakeem Belo-Osagie and Mohammed Indimi both
share the 34th position with a Tanzanian with a
net worth of $550 million.
Belo-Osagie is the chairman and a significant
shareholder of the Nigerian operations of United
Arab Emirates-based telecom provider Etisalat,
Nigeria’s fastest growing mobile telecom network,
with a subscriber base of 17 million, up from six
million three years ago. Etisalat’s growth is the
catalyst for Belo-Osagie’s increased fortune, up
by $150 million from a year ago. He now controls
0.21 per cent of the economy.
Mohammed Indimi, chairman of Oriental Energy
Resources, a private Nigerian oil exploration and
production company, has a net worth of $550
million. His contribution to GDP could be as much
0.13 per cent after NBS announces its estimates
of the country’s GDP. Oriental, which Indimi
founded in 1990, has three projects in the offshore
Nigerian oil and gas industry, including the Ebok
Field, which produces 35,000 barrels a day. It
shares ownership of the projects with U.K.-listed
oil exploration company Afren Plc. The Ebok Field
was awarded to Oriental Energy Resources in
2007 by a joint venture between Exxon-Mobil and
the Nigerian National Petroleum Corporation.
The 10th richest Nigerian who ranks 38 on the
African list with a net worth of $500 million is
Sani Bello, who is the founder of Amni
International Petroleum Development Company,
an oil exploration company with a 50 per cent
interest in the Okoro Setu oil field, located in
shallow waters offshore Nigeria. With half a billion
dollars to his name, he contributes 0.19 per cent
of GDP which could later be revised to 0.125 per
cent.
Amni shares ownership of the Okoro Setu field
with London-listed exploration firm Afren;
production averages 18,200 barrels a day. Bello is
also a minority stakeholder in mobile telecom firm
MTN Nigeria. He is a former Nigerian military
governor from Kano State and a one-time
ambassador to Zimbabwe. His Sani Bello
Foundation provides small loans and grants to
young Nigerian entrepreneurs.
The other two are Femi Otedola and Tunde
Folawiyo with net worth of $410 million and $400
million respectively.
Top 10 most capitalised quoted companies as at
January 10, 2014, on the Nigerian Stock
Exchange are:
COMPANIES CAPITALISATION
Dangote Cement N3.92 trillion
Nigeria Breweries N1.23. trillion
Nestle N919.49 billion
Guaranty Trust Bank N832.90 billion
Zenith Bank N728.4 billion
FBN Holding N504.17 billion
Guinness Nigeria N356.9 billion
Lafarge Wapco N345.18 billion
United Bank for Africa N296.83 billion
Access Bank N219.73 billion
Leadership
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