Mike Adenuga loses $300m, net network declines

Mike Adenuga loses $300m, net network declines

Mike Adenuga, the Chairman of Conoil and the founder of Globacom, has experienced a notable setback, with a $300 million decrease in his net worth, now estimated at $3.3 billion at the time of this report.

Just three months ago, in July, he boasted an estimated net worth of $3.6 billion.

The recent dip can be attributed to the performance of his holdings in Conoil and the persistent devaluation of the Nigerian naira against the U.S. dollar.

According to data tracked by Nairametrics, the official exchange rate from the Central Bank of Nigeria, as of October 19, 2023, stands at N860/$.

However, an earlier report by Nairametrics indicates that the unofficial market, where the naira is traded freely, has witnessed a more severe decline.

The exchange rate on the peer-to-peer (P2P) market, where forex is covertly traded through the crypto market, suggests a steady decline, with N1,186/$1 being quoted.

As Nigeria’s third-richest individual, Mike Adenuga has amassed his wealth through his ventures in the telecommunications and oil production sectors.

Globacom, his mobile phone network, ranks as Nigeria’s third-largest operator, with millions of subscribers.

Additionally, his oil exploration company, Conoil Producing, manages six oil blocks in the Niger Delta.

Backstory
Prior, Nairametrics reported that in July, Mike Adenuga suffered a significant loss of $2.7 billion, reducing his net worth to $3.6 billion.

This loss was influenced by several factors, including the unification of the naira in June, which also affected the evaluation of Aliko Dangote’s net worth, causing him to slip to second place according to Forbes.

Furthermore, the decline in net worth can be attributed to privately held businesses in which Adenuga holds stakes, such as Conoil and Globacom.

In 2003, Adenuga founded Globacom, which has since grown to become one of Nigeria’s largest telecommunications companies, with operations in Ghana and the Republic of Benin.

Over the years, his net worth has experienced fluctuations, reaching $7.3 billion in 2022 and peaking at an impressive $10 billion in 2015.

Despite his billionaire status, Mike Adenuga has faced challenges throughout his career.

Notably, in 2006, he was implicated in a money laundering case and detained following a raid on the head offices of Globacom, Equitorial Trust Bank (ETB), and Conoil by the Economic and Financial Crimes Commission.

Subsequently, he resided in London until receiving a pardon from the regime of late President Umaru Musa Yar’Adua, allowing his return to Nigeria.

In June 2016, he was pursued for a combined debt of over $140.5 million by two foreign and one local company.

Nairametrics.com