Billionaire Secrets: What Dangote, Adenuga, Abdulsamad Do To Stay Rich

Despite the prevailing challenges, Nigeria is still seen as Africa’s largest economy and one of the fastest-growing in the world. Yet, more than half of the Nigerian population still grapple with extreme poverty, while a small group of elites enjoy ever-growing wealth.

The scale of economic inequality in Nigeria has reached extreme levels, and it finds expression in the daily struggles of the majority of the population in the face of accumulation of wealth by a small number of individuals.

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The amount of money that the richest Nigerian man can earn annually from his wealth is sufficient to lift two million people out of poverty for one year. Lifting all Nigerians living below the extreme poverty line of $1.90 out of poverty for one year will cost about $24bn.

This $24bn is about $6bn lower than the total wealth owned overall by the five richest Nigerians which is equal in excess of $30bn.

Even though the coronavirus pandemic dealt a heavy blow to the world’s economy, these top richest people in Nigeria still hold their ground on the list of top richest people in Nigeria in 2021.

Below are the top three richest people in Nigeria, their net worth, source of income; and what they did to remain successful.

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I Invest Rather Than Keep Money In Banks—Aliko Dangote

Aliko Dangote is the richest man in Nigeria, with a vast net worth of around $12bn.

It is no surprise to people as he is already known as the richest man in Africa for over a decade. Dangote has earned so much money through his business which has helped him become the richest man in Nigeria at 63 years.

Dangote’s business interests encompass many industries, including oil and gas, consumer goods, and manufacturing. However, Dangote Cement makes up the majority of the conglomerate’s revenue, of which Dangote owns 85 per cent.

According to Forbes magazine, the subsidiary produces 45.6 million metric tons of cement every year and operates in 10 African countries.

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Dangote also owns the world’s third-largest sugar refinery. As of March 31, 2021, Dangote Cement Group reported quarterly revenue of N332.7bn, which is approximately $808.5m.

Findings showed that Dangote has always reinvested the majority of his profits back into his businesses. This is one reason the company has grown so much since its inception.

During an interview with Al Jazeera News, Aliko Dangote explained, ‘‘We [Dangote Group] are not doing like other Africans who keep most of their money in the bank. We do not keep money in the bank. We fully invest whatever we have and we keep investing.”

When talking about what influences his investment choices, Dangote said he has two basic principles, which he never violates. “First, I only enter a business that I can fully understand. I never enter a business that is not clear to me. The second principle is that I have to be able to become number one or, at worst, number two in that business.”

These principles perhaps inform his decision on why he took his time to make his entry into the petroleum industry, where he will certainly end up being the major player in Nigeria, with what could be the largest refinery in the world, with a capacity to refine 650,000 barrels of petrol each day.

If successful, the refinery could significantly reduce Nigeria’s reliance on international suppliers for oil and gas and end the import of $7bn in fuel a year.

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I’m Very Strategic When Making My Business Moves—Abdulsamad

Kano-born Rabiu Isyaku Abdulsamad is the head of BUA Group, a business conglomerate with wide influence in Nigeria’s economic and business sector, with a special interest in sugar, cement, ports, real estate, agricultural produce, oil and mill, import rice, edible oil, flour, and iron and steel products.

Last Thursday, January 6, the CEO and Chairman of BUA Group reportedly added nearly $1.9bn to his net worth. Rabius’s fortune, according to Billionaires Africa, stands at $7.2bn, and this was as a result of the valuation of BUA Foods after the shares jumped more than 10 per cent from N40 to N44 per share.

Abdulsamad rose from nothing to become successful through sheer dint of hard work laced with doggedness.

His major business breakthrough came in 1990, when government-owned Delta Steel Company, contracted (BUA) to supply its raw materials in exchange for finished iron products. Later that year, BUA through Rabiu, expanded further into steel, producing billets, importing iron ore, and constructing multiple rolling mills in Nigeria.

After enjoying a successful take-off in business, Rabiu took an audacious business decision by acquiring Nigerian Oil Mills Limited, the largest edible oil processing company in the country.

By 2008, BUA had broken an eight-year monopoly dominated by rival Dangote in the Nigerian sugar industry by commissioning the second largest sugar refinery in sub-Saharan Africa.

In 2009, the company went on to acquire a controlling stake in a publicly-listed Cement Company in Northern Nigeria and began to construct a $900m cement plant in Edo State, completing it in early 2015.

He also has a stake in BUA Oil and Mill, BUA Estate, BUA Sugar, BUA Port, and terminal and BUA cement.

In early January 2020, Rabiu merged his privately-owned Obu Cement company with listed firm Cement Company of Northern Nigeria as the company trades on the Nigerian stock exchange with Rabiu owning a 98.5 per cent stake.

On his advice to entreprenuers, Rabiu urged them to always critically analyse every new project prior to implementation. He said this way, all the necessary factors are considered, thus minimizing the probability of failure.

He said, “If you are doing something, don’t think about how much money you are making or how much money you’re going to make. The important thing is once you’re doing something, make sure you’re focused. Once you start building something, make sure that you finish it.”

I Play A Major Role In All My Businesses—-Mike Adenuga

Mike Adenuga is officially Nigeria’s second richest man, who built his fortune in telecom and oil production. His mobile phone network, Globacom, is the third largest operator in Nigeria, with 55 million subscribers.

His oil exploration outfit, Conoil Producing, operates six oil blocks in the Niger Delta. Adenuga got an MBA at Pace University in New York, supporting himself as a student by working as a taxi driver. He made his first million at age 26 selling lace and distributing soft drinks.

In an interview with Bisi Olatilo, he said that the secret of his success lies in his ability to fully understand any business he is venturing going into. He added that the understanding of the working of these businesses enables him to play active role in their operations.

He said, “I put a lot of premium on the fact that when we go out there to resource a company, we look for the very best and I think we ‘ve been very lucky in that area.

“We have highly competed people and are quite honest in running the businesses. I have also taken a lot of time to make sure that in any business, I play a major role. I ensure I know the business very well. It’s easier for me to be able to add value to it and that’s why we been able to succeed.

When asked to give his advice to young entreprenuers, the billionaire businessman said, “Whatever business you want to do, you must know the business very well. Try to know your business very well, try to work hard.

“You have to close mark it because a business doesn’t work very well on its own. You have to close mark it very well from one day to the other. You also have to pray to God and beg for God’s blessings and I think with God’s grace you will succeed.”

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