Directors of some of the most capitalised companies on the Nigerian Stock Exchange (NSE) became N70 billion richer in 2017, as stocks recovered from a blighting downturn to reach record highs.
Powered by the mammoth return on stocks (up 42 percent in 2017), the cumulative value of the stock holdings of the twenty directors reviewed by BusinessDay, rose some 88 percent as of the last trading day of 2017 compared to the previous year.
Tony Elumelu, who doubles as director of United Bank for Africa and Transcorp, added the most capital gains in 2017, a N22 billion gain that meant he accounted for 31 percent, about a third of the total made by the 20 directors.
Elumelu held 2.07 billion and 17 billion shares in UBA and Transcorp respectively, as of the end of 2016, according to data obtained from both firms’ 2016 annual report.
UBA’s share price gained 128 percent in 2017 moving to N10.3 from N4.5 per share at the beginning of the year.
Transcorp was also up 68 percent to N1.46 from N0.87 in the period under review, helping Elumelu to bumper gains.
Seplat Petroleum Development Company’s Bryant (ABC) Orjiakor had the second biggest capital gains.
Orjiakor raked in N16.5 billion from his 67.1 million shares in the company as deduced from the indigenous oil and Gas Company’s 2016 annual report.
Seplat’s share price rose 65 percent to N626 as of the last day of trading in 2017 from N379 in 2016.
Access Bank’s Herbert Wigwe ranks third with capital gains of N12.3 billion.
Wigwe’s 2.7 billion shareholdings valued at N15.77 billion as of the end of 2016 jumped 78 percent to N28.07 billion, pretty much in line with the increase in Access Bank’s share price to N10.45 from N5.87 in the period under review.
Aliko Dangote, Africa’s richest man, is next in line with capital gains totalling N10.6 billion, 15.14 percent of the total. Appreciations in the share prices of Dangote Cement and Dangote Sugar bolstered Dangote’s combined 680 million shareholdings in both companies to N19.4 billion in 2017 from N8.8 billion in 2016.
Dangote Cement’s share price rose 32 percent to N230 in 2017 from N173.9 in 2016, while Dangote Sugar gained 227 percent to N20 from N6.11 in the period under review.
Dangote however holds larger indirect shares (up to 80 percent of Dangote Cement) through his investment vehicle, Dangote Investment Ltd, implying he made more in capital gains last year.
The annual report of Dangote Flour Mills implies he holds no direct shareholdings in the company.
Atedo Peterside of Stanbic IBTC bank is a distant fifth, with capital gains of N3.18 billion.
Peterside’s 120 million shareholding in Stanbic as of end December 2016 appreciated 176 percent to N4.98 billion by end 2017 from N1.8 billion.
Stanbic’s share price gained in similar fashion, rising 176 percent to N41.5 by end 2017 from N15 the previous year.
The director with the sixth highest capital gains is Oba Otudeko of First Bank Nigeria Holdings, who raked in N2.93 billion.
Gbenga Oyebode of Okomu Plc, comes next with N1.14 billion.
The value of Oyebode’s 41.28 million shareholding in Okomu rose 68.5 percent to N2.79 billion as of end-2017 from N1.658 billion as of end-2016, as Okomu’s share price hit N67.69 from N40.17 as of end-2016.
Segun Agbaje of Guaranty Trust Bank is next with capital gains of N668.1 million, rewarded by a 64.98 percent rise in GTB’s share price to N40.75 as of end-2017 from N24.7 as of end-2016.
Agbaje holds some 41.6 million GTB shares.
Uzoma Dozie of Diamond bank follows closely after booking N542.7 million capital gains from his 875.36 million shareholdings in the tier-two lender.
Diamond Bank’s share price gained 70 percent to N1.5 as of end-2017 from N0.88 as of end-2016.
Emmanuel Ukpabi of Flour Mills and David Ifezulike of Nestle Nigeria are next in line with capital gains of N50 million and N41.9 million respectively.
Ukpabi and his 4.2 million shares benefited from a 71.6 percent increase in the share price of Flour Mills to N29 from N16.9 in the period under review.
The value of Ifezulike’s 56,255 shareholding in Nestle appreciated 92 percent, in line with Nestle’s share price, to N87 million from N45.56 million.
Emeka Emuwa of Union bank follows closely with capital gains of N31.9 million.
The value of Emuwa’s 10.5 million shares in Union Bank rose to N82.2 million from N50.28 million following the 63.5 percent appreciation in the share price of Union bank to N7.8 from N4.77.
Kayode Jamodu of PZ Cussons Nigeria and Asue Ighodalo are next with capital gains of N20 million and N17.8 million apiece.
Jamodu’s 3.5 million shares in PZ are now worth 42.06 percent more at N70.38 million, following the appreciation of PZ’s share price to N20.6 from N14.5 within one year.
Ighodalo’s 55.6 million shareholding in Sterling bank went from a N42 million valuation to N60.1 million as of end-2017, thanks to the 42 percent share price gain of Sterling bank to N1.08 from N0.76 within that period.
Babatunde Savage of Guinness and Adewale Tinubu of Oando made capital gains of N9.25 million and N4.74 million, while Ernest Obi of Fidelity bank and Felix Nwabuko of Presco made N1.9 million and N1.34 million apiece.
Nigerian stocks are enjoying a renaissance that began when Africa’s largest economy turned the corner, last year, on its first recession in a quarter of a century and dollar liquidity improved from the setting up of the Investor and Exporters FX window.
Stocks have rallied to a 2008 high and are showing no signs of slowing down soon.
The All Share Index advanced 0.51 percent Monday to 43,119 points, January 15, according to data obtained from the NSE website. Stocks are up 12.75 percent this year.
LOLADE AKINMURELE
