Many people wonder why some of Africa’s most famous business figures, like Tony Elumelu and Adedeji Adeleke, are not on Forbes’ Billionaire List, even though their companies are worth billions. A financial expert, Innocent Tino, recently explained the reason behind this.
Company Valuation vs. Personal Wealth
Tino, who describes himself as an investment banker and communications specialist, clarified that a company’s total valuation does not equal the personal net worth of its biggest shareholder. In a Facebook post, he stated, “People like Tony Elumelu and Adeleke, whose companies are worth billions, are not on the Forbes list because they are just majority shareholders. That doesn’t mean the entire company’s valuation belongs to them.”
He further explained that companies like Adeleke’s, valued at $2.5 billion, are owned by multiple investors. Adeleke may be the biggest shareholder, but his stake does not reach the $1 billion mark needed to qualify for Forbes’ list.
Public Companies and Billionaire Rankings
Tino emphasized the difference between company valuation and personal wealth, especially for executives running publicly traded companies. He noted, “The company’s worth is not their personal worth. Public Limited Companies (PLCs) are owned by many investors.”
Forbes’ Billionaire List considers only an individual’s personal net worth, including shares, private businesses, and other direct assets. It does not count wealth tied to public companies they do not fully control. This is why Elumelu, despite his leadership in Heirs Holdings, Transcorp, and United Bank for Africa (UBA), does not qualify as a billionaire based on Forbes’ criteria.
