Naira Devaluation Cuts 72.4 Million From Jim Ovia's Zenith Bank Stake

Zenith Banks Jim Ovia Sees Significant Decline in Market Value of Stake Amid Naira Devaluation

Despite a rise in Zenith Bank's share price, Jim Ovia, Nigeria's richest banker and founder of the leading financial institution, has experienced a notable decline in the market value of his stake in the bank due to the devaluation of the Nigerian naira.

As the chairman of Zenith Bank, Ovia holds 5,082,800,739 shares. However, since the start of the year, the value of his stake has fallen by 72.36 million, reflecting broader economic challenges that Nigerian business leaders are facing. The naira's depreciation has eroded what would have been nominal gains, highlighting the impact of currency devaluation on wealth accumulation.

Zenith Banks Valuation Affected by Nairas Depreciation

Although Zenith Bank's share price has shown a positive trend on the Nigerian Exchange NGX this year, the devaluation of the naira against the U.S. dollar has effectively neutralized these gains. When adjusted for the currency depreciation, Ovia's stake has experienced a significant loss.

Had the naira maintained its pre-devaluation value, Ovias stake would have increased by 41.5 million. The currency decline follows President Bola Tinubus decision to liberalize Nigerias foreign exchange market, which led to the nairas steep drop in value.

Naira Devaluation Results in 32.48 Reduction in Market Value

The devaluation of the naira has reduced the market value of Ovias stake in Zenith Bank by approximately 32.48. Despite this setback, Zenith Bank continues to strengthen its position as one of Nigeria's top financial institutions, maintaining a strong presence both domestically and in West Africa. The bank remains one of the most profitable in the country.