Billionaire investor and United Bank for Africa (UBA) chairman, Tony Elumelu, has seen the value of his 2.54 billion shares in UBA decline sharply, dropping below $60 million due to a 12.4% slump in the bank’s stock price. Over the past 35 days, Elumelu’s UBA stake has lost N12.46 billion ($9.5 million), reflecting both market sell-offs and the impact of naira devaluation on dollar-based valuations.
A Recurring Financial Hit for Elumelu
This isn’t the first time Elumelu has taken a financial blow from UBA’s stock performance. In 2024, the bank’s 32.55% share price gain was completely wiped out by the naira’s devaluation, cutting his stake’s value by $17 million in dollar terms.
Elumelu’s 7.43% stake in UBA is held through various investment vehicles, including:
•Heirs Holdings Limited
•HH Capital Limited
•Heirs Alliance Limited
Despite the latest downturn, he remains one of the most powerful investors on the Nigerian Exchange (NGX) and a major force in African banking and investment.
UBA Shares Drop as Operating Expenses Soar
UBA, a key player in Nigeria’s financial sector, operates across 24 countries on four continents, including the UK, U.S., France, and the UAE. However, despite reporting strong earnings, its stock price has struggled.
Key Figures Behind UBA’s Recent Performance
•Share price decline: 12.4% drop in the past 35 days
•Market cap loss: Fell below $800 million, erasing millions in shareholder value
•Earnings growth: 16.9% profit increase in the first nine months of 2024
•Revenue: Rose from N449.3 billion ($274.84 million) to N525.31 billion ($320.9 million)
•Operating expenses: More than doubled from N237 billion ($154 million) to N553 billion ($360 million)
The rising costs have put significant pressure on the bank’s profitability, affecting investor sentiment.
How Much Has Elumelu Lost?
As of February 12, 2025, his UBA stake was worth N99.92 billion ($66.3 million). However, after the recent decline, it now stands at N87.46 billion ($56.8 million)—a N12.46 billion ($9.53 million) loss.
Despite this setback, Tony Elumelu remains a dominant figure in African finance, with major holdings in banking, energy, and investment sectors. While UBA’s stock faces short-term pressures, his long-term influence on Nigeria’s financial markets remains unmatched.
