Wema Bank stock decline results in $3.7-million loss for Nigerian gambling magnate

Kessington Adebutu, the renowned Nigerian gambling magnate and founder of Premier Lotto Limited, has recorded another substantial decline in the market value of his stake in Wema Bank as shares in the leading lender slump by double-digits on the Nigerian Exchange (NGX).

According to data tracked by Billionaires.Africa, Adebutu, one of the country’s richest individuals, has seen the market value of his stake in the financial services provider decline by N2.86 billion ($3.7 million) over the past 38 days.

This comes hot on the heels of the $4-million loss he experienced between July 3 and Sept. 1. During this period, his stake in Wema Bank fell from N21.03 billion ($27.12 million) to N17.74 billion ($22.87 million).

Adebutu, the founder and CEO of Nigeria’s oldest and leading gaming company, Premier Lotto Limited, holds a 28.15-percent stake in Wema Bank, which translates to 3,619,885,989 ordinary shares through Neemtree Limited, a special purpose vehicle incorporated in 2013 to acquire shares in targeted organizations.

In recent times, the financial services provider has evolved into one of the country’s leading financial institutions, boasting Africa’s first fully digital bank, ALAT. It is also one of Nigeria’s most resilient banks, with decades of experience in the financial services sector.

However, since Sept. 4, Wema Bank shares have experienced a 14.39-percent decline, dropping from N5.49 ($0.007) to N4.70 ($0.006) at the time of drafting this report, as investors trim down their stakes in volatile assets amid mounting economic uncertainties.

Consequently, the market value of Adebutu’s stake in Wema Bank has slumped by N2.86 billion ($3.7 million), from N19.87 billion ($25.78 million) on Sept. 4 to N17.01 billion ($22.07 million) as of the time of writing.

Despite the recent decline in the market value of his stake in the leading financial services provider, Adebutu remains one of the richest investors on the NGX.