Africa’s richest man Aliko Dangote loses $8.7 billion amid Nigeria’s currency woes
Africa’s wealthiest individual Aliko Dangote has encountered a substantial setback as his net worth plummeted by a staggering $8.7 billion, dropping below the $15-billion threshold. This decline comes on the heels of a surge that saw his wealth peak above $23 billion at the end of January 2023, according to the Bloomberg Billionaires Index.
Dangote’s recent financial setback can be attributed to a dual blow: the recent devaluation of the Nigerian naira and a decline in the share price of his flagship company, Dangote Cement Plc. Dangote Cement, the largest cement producer in Sub-Saharan Africa, faced a pullback on the Nigerian Exchange that contributed to the overall decline in Dangote’s fortunes.
Nigeria’s currency shake-up: Dangote’s wealth plunge amid efforts to discard currency peg
At the time of drafting this report, Dangote’s net worth has decreased to $14.6 billion from $23.3 billion on Jan. 30, reflecting an $8.7-billion drop. This decline is influenced by the recent devaluation of the Nigerian currency — the country’s second devaluation in eight months.
The recent devaluation of the Nigerian currency is part of a strategic effort to streamline the country’s multiple exchange rate system and attract investment to support its struggling economy.
Aligned with market-friendly reforms introduced by Nigerian President Bola Tinubu in June 2023, this move aims to discard the longstanding peg that artificially maintained the currency’s high value.
Aliko Dangote’s declining stakes beyond Dangote Cement
Beyond the impact on Dangote Cement, the market values of Dangote’s stakes in Dangote Sugar Refinery and NASCON Allied Industries have also witnessed substantial declines.
His 72.7-percent stake in Dangote Sugar Refinery is now valued at $330 million, down from more than $770 million in January. Similarly, his 66.5-percent stake in NASCON Allied has dropped to $58.4 million from over $120 million.
Despite these financial setbacks, Dangote remains one of the world’s wealthiest individuals, currently ranking as the 135th richest individual globally, according to the Bloomberg Billionaires Index.
His fortune is derived primarily from an 86.6-percent stake in Dangote Cement Plc and a substantial contribution from his fertilizer plant, boasting an annual production capacity of 55 million tonnes of cement and 2.8 million tonnes of urea, respectively.