Nze Chidi Duru, who holds a key position as the Deputy National Organising Secretary for the All Progressives Congress (APC), has called on the Central Bank of Nigeria (CBN), top bank executives, and investors to take action in strengthening the naira. His plea comes after Nigeria’s second wealthiest man, Abdulsamad Rabiu, the Chairman of BUA Cement and BUA Foods, suffered a significant $1 billion loss in his net worth.
According to reports, as of May 6 this year, Rabiu’s fortune was valued at $5.9 billion. However, by August 16, that number had dropped to $4.8 billion, marking a $1.1 billion decline in just 90 days.
Nze Duru responded to the sharp drop, pointing to the devaluation of the naira as the main reason. He stressed that the drop in the value of the naira, especially when compared to the US dollar, has a direct impact on the wealth of individuals like Rabiu. The naira, which was trading at N1,378.51 to one dollar on May 6, had weakened to N1,579.89 by August 16. Duru noted that this depreciation often mirrors the trends seen in the stock market.
Duru highlighted the connection between the falling naira and stock market movements, saying, “When the naira loses value, it affects the stock market. This is why I keep urging that we must work on strengthening our currency. It benefits every part of society.”
He further explained how a stronger naira would benefit various sectors. For manufacturers, it would reduce the cost of imported materials; for the stock market, it would push stock prices higher; and for everyday consumers, it would mean lower prices for goods. He appealed to the CBN, bank leaders, and wealthy individuals to come together and take urgent action to stabilize the naira, even if their motivation is purely to protect their own wealth.
Duru went on to talk about the unpredictable nature of financial markets. He explained that investors can enjoy the success of the market one day and then experience an unexpected decline the next. He believes that Abdulsamad Rabiu is now facing this harsh reality. According to him, Rabiu’s current situation is a result of the volatile stock market combined with the challenges of currency depreciation.
