APC NWC member urges CBN to strengthen Naira over BUA owner’s $1b loss – The Sun Nigeria
From Romanus Ugwu, Abuja
Deputy National Organising Secretary of All Progressives Congress (APC), Nze Chidi Duru, has urged Central Bank of Nigeria (CBN) bank chiefs, and investors to strengthen naira following $1 billion loss in net worth by Nigeria’s second richest man and Chairman of BUA Cement/BUA Foods, Abdulsamad Rabiu.
According to reports, as at May 6, this year, Rabiu’s net worth stood at $5.9 billion, but by August 16, his net worth had nosedived to $4.8 billion.
Reacting to the total net worth which significantly decreased by $1.1 billion over the past 90 days, Nze Duru argued that the decline is directly attributed to the value of the national currency, the Naira, relative to other currencies, especially the dollar, which is Nigeria’s preferred convertible currency.
In a statement he issued, the member of the APC National Working Committee (NWC), noted: “Recall that on May 6, this year, the naira was exchanged for N1,378.51 for a dollar, but by August 16, the naira value had depreciated to N1,579.89. This currency value depreciation often reflects stock market price movements.
“The fact of the matter is that there is a correlation between currency depreciation and stock market movements. This is one reason I have continued to advocate for the strengthening of the naira against other currencies. This is for the good of all segments of the country.
“For those involved in manufacturing, a strong naira makes their imported inputs cheaper; for the stock market, it drives a stronger pricing threshold and for the general population of consumers, it means more affordable goods.
“I once again appeal to the authorities of the CBN, bank chiefs, investors, and the exclusive circle of the very rich to come together to save the naira. If not for altruistic reasons, at least they should do so to save their wealth and material value standings,” he appealed.
Commenting further, Duru noted that; “the vagaries of the financial and stock markets can sometimes be vicious in their manifestations at times. Today, an investor, especially in wealthy stocks, may be riding high on the sentiments or fundamentals of the stock market, but the story may change abruptly the following day.
“Stock prices may just suddenly take a downward trend, with huge implications for the value of stocks and the investment portfolios of rich investors. I believe this is the experience AbdulSamad Rabiu is going through at the moment,” the statement read.
