Billionaire Kessington Adebutu’s Wealth Takes a Hit as Wema Bank Shares Plummet

Business mogul Kessington Adebutu, renowned in Nigeria’s gambling scene as the founder of Premier Lotto Limited popularly called ”Baba Ijebu” faces a substantial decline in his fortune attributed to a recent plummet in the market value of his stake in Wema Bank, a cornerstone of the nation’s banking sector.

Report from Billionaires.Africa reveals that Adebutu, a prominent figure among Nigeria’s wealthiest individuals, has experienced a staggering N4.6 billion ($4.03 million) decrease in the value of his holding within the financial institution over the past 16 days.

This financial setback comes in the wake of a surge in Adebutu’s wealth observed from March 8 to March 20. During this period, his shares in Wema Bank surged by $2.3 million, propelling his net worth from N25.88 billion ($17.30 million) to N29.43 billion ($19.67 million).

Wema Bank Shares Plummet by Over 15 Percent

Wema Bank, a stalwart in Nigeria’s financial landscape, has witnessed a precipitous decline in its stock value on the Nigerian Exchange (NGX). The institution, which has transitioned into a leading financial services provider over decades, is renowned for pioneering Africa’s first fully digital bank, ALAT.

The recent nosedive in Wema Bank’s shares on the NGX has amounted to a significant 15.29 percent drop, plummeting from N8.50 to N7.20 (or $0.0075 to $0.0063) at present. This sharp decline has pushed the bank’s market capitalization below the $80 million mark, inflicting substantial losses upon its shareholders.

In its latest financial report, Wema Bank disclosed fraud losses exceeding $500,000 for the fiscal year 2023. These losses, totaling N685.59 million ($593,000), emanated from various channels, including the bank’s digital platforms, collection and payment systems, and third-party integrations.

Adebutu, the visionary behind ”Baba Ijebu” maintains a formidable 28.09 percent stake in Wema Bank through Neemtree Limited, a strategic investment vehicle established in 2013.

The recent downturn in Wema Bank’s stock price has inevitably impacted the value of Adebutu’s stake. The worth has dwindled from N30.04 billion ($26.34 million) on April 2 to N25.45 billion ($22.31 million), marking a notable loss of N4.60 billion ($4.03 million). Despite this setback, Adebutu retains his status as one of the most affluent investors on the Nigerian Exchange (NGX).

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