Dangote’s $3.61 Billion Wealth Plunge: Naira Devaluation Shakes Africa’s Richest Man
Aliko Dangote, Africa’s wealthiest individual, experienced a significant decline in his net worth this year, amounting to a loss of $3.61 billion due to the devaluation of the Nigerian naira by the Central Bank of Nigeria (CBN). Despite this setback, Dangote retained his position as Africa’s richest person for the 12th consecutive year, ending the year with a net worth of $15.1 billion. However, he slipped from being among the top 100 billionaires globally at the start of the year to the 128th position by the year’s end, as reported by the Bloomberg Billionaires Index.
The decline in Dangote’s net worth was primarily attributed to the devaluation of the naira, which adversely affected his investments. Notably, Dangote Cement, Nigeria’s second most valuable company, experienced a 21.3% increase in value but could not offset the impact of the currency devaluation. Consequently, his net foreign exchange (FX) assets, as per the Bloomberg Billionaires Index, now stand at approximately $2.58 billion.
The Nigerian naira faced its toughest year since the country’s return to democracy in 1999, emerging as the worst-performing currency in Africa. The CBN’s decision to liberalize the foreign exchange regime in June, aimed at revitalizing the economy, resulted in a significant devaluation of the naira. This move merged all segments of the FX market into the Investors and Exporters window and reintroduced the willing buyer, willing seller model. Subsequently, the naira continued to depreciate against major foreign currencies.
Aliko Dangote, aged 66, is a self-made billionaire known for his interests in cement and sugar. He founded and chairs Dangote Cement, the largest cement producer in Africa, with an annual capacity of 48.6 million metric tons and operations across the continent. Additionally, he owns 86% of the publicly traded Dangote Cement and holds shares in United Bank for Africa, Nascon Allied Industries, and Dangote Sugar.
The Dangote Group, one of Nigeria’s leading corporations and a significant contributor to the nation’s economy, has disclosed that its various businesses have paid N474 billion in taxes to the federal government over the past three years. The conglomerate is also a major employer in the Nigerian private sector.
Dangote’s $20 billion oil refinery, which is poised for production but not yet operational, is not included in his current valuation. However, the refinery recently received its third cargo of one million barrels of crude oil, bringing the total to three million barrels at the facility’s Single-Point Mooring. This development is a significant stride towards achieving Nigeria’s energy refining capacity and security. The refinery plans to commence production of diesel and aviation fuel by mid-January 2024, with Premium Motor Spirit (petrol) to follow. The facility is designed to operate at a capacity of 350,000 barrels per day and is capable of meeting Nigeria’s domestic demand for refined products while also having surplus for export.
Source: Nairametrics
