Nigeria’s third-richest individual, AbdulSamad Rabiu, experienced a significant decline in his net worth, shedding $456 million in a single day.

This drop brings his total wealth to $4.6 billion, marking an 8.99% decrease, according to Forbes estimates.

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

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

Rabiu retains a 98.2% stake in BUA Cement, which trades on the Nigerian Stock Exchange, along with a 95% stake in BUA Foods, a publicly traded food conglomerate.

Despite the recent dip in Rabiu’s net worth, BUA Cement Plc reported robust financial performance for the year ending December 31, 2024. The company’s profit before tax surged 48.20% year-on-year to N99.63 billion, while full-year revenue climbed 90.54% to N876.47 billion, driven largely by strong domestic sales of its bagged cement products.

However, rising costs and foreign exchange losses weighed heavily on profitability. BUA Cement’s cost of sales jumped 108.74% year-on-year to N576.21 billion, primarily due to increased energy costs and operational expenses. As a result, the company’s gross profit margin declined by 14%, settling at 34.2%.

Despite a boost in operating profit, BUA Cement’s net profit margin slipped to 8%, reflecting mounting cost pressures and rising tax obligations. Cement production, an energy-intensive industry, saw BUA Cement grappling with higher fuel, electricity, and plant maintenance expenses, which took a toll on its bottom line.

The company’s operating profit margin rose slightly by 1.38%, showcasing some resilience in its core operations. However, with foreign exchange losses and finance costs more than tripling year-on-year, earnings were further eroded. BUA Cement’s cash and cash equivalents also plunged 62.35% to N84.75 billion, raising concerns about liquidity management.

While Rabiu’s net worth has taken a hit, BUA Cement’s strong revenue growth signals the company’s ongoing market strength. Nevertheless, addressing rising costs and stabilizing liquidity will be crucial for sustaining long-term profitability.