Dangote’s wealth hits $28.1 billion, secures spot as world’s richest Black person

Omokolade Ajayi -
Key Points
  • Aliko Dangote’s net worth rises to $28.1 billion, securing his spot among the world’s top 100 richest individuals, ranking 68th on the Bloomberg Billionaires Index.
  • Dangote’s refinery, with a 650,000-barrel daily capacity, is reshaping Africa’s energy market and driving his wealth increase despite early financial volatility.
  • His diversified investments, including a 92.3% stake in the refinery and a $3.02 billion fertilizer business, solidify Dangote’s dominance in Africa’s industrial landscape.

Aliko Dangote, Africa’s wealthiest individual and the richest Black person globally, has achieved another milestone, with his net worth climbing to $28.1 billion. This feat places him 68th on the Bloomberg Billionaires Index, securing his position among the world’s top 100 richest individuals. The driving force behind this achievement is the exceptional performance of his $20 billion Dangote Oil Refinery, a game-changing facility that is reshaping Africa's energy market.

Dangote’s fortune has grown by $300 million since Oct. 17, rising from $27.8 billion to $28.1 billion. This increase reflects the strength of his diversified investment portfolio, bolstered by a strengthening Nigerian naira against the U.S. dollar.

The refinery, inaugurated in May 2023, has already begun exporting Premium Motor Spirit (PMS) to markets such as Cameroon, Angola, Ghana, and South Africa, cementing its role as a cornerstone of Africa’s fuel industry.

With a refining capacity of 650,000 barrels per day, the Dangote Oil Refinery stands as the largest single-train refinery in the world. It is a linchpin in Nigeria’s economic transformation, aiming to significantly reduce the country’s reliance on costly fuel imports despite its position as Africa's largest oil producer.

Petrochemical complex strengthens Dangote's empire

Earlier this year, Dangote's wealth experienced significant volatility. Starting 2024 with a net worth of $23.3 billion, his fortune slumped to $12.7 billion on Oct. 6, driven by the naira's devaluation and declining shares in Dangote Cement Plc, the flagship of his business empire. However, the addition of his 92.3 percent stake in his newly operational refinery has propelled his net worth to its current peak, marking a remarkable turnaround in his financial standing.

The Dangote Refinery, located on a Lagos peninsula, is a central part of the Dangote Petrochemical Complex, which also includes a polypropylene plant with an annual capacity of 1 million metric tonnes and two of the world's largest fertilizer trains. Despite its monumental scale, the journey to bring the complex and refinery to life was fraught with challenges.

Initially budgeted at $6 billion, the project encountered a litany of hurdles, including land disputes, COVID-19 disruptions, and local resistance. These obstacles caused costs to triple, pushing Dangote to endure annual interest payments of $50 million to $60 million on a $5.5 billion loan. Reflecting on the overwhelming pressure and skepticism, Dangote remarked, “I didn’t know what we were building was a monster.”

Since the refinery's inauguration, Dangote has faced disputes over crude supply and gas pricing. Securing domestic crude has proven difficult, as much of Nigeria's oil output is tied up in long-term export contracts, forcing him to source foreign crude at premium rates. Despite these challenges, the refinery’s potential remains a critical pillar of Dangote’s business ambitions.

Dangote’s refinery powers his legacy

Dangote’s refinery stake, now valued at $18.6 billion, has become his most valuable asset, complementing his 86 percent stake in Dangote Cement, which is worth $4.53 billion. His fertilizer business adds $3.02 billion to his wealth, alongside cash holdings of $744 million. These diverse investments collectively underscore Dangote's dominance in Africa’s industrial landscape.

This success cements Dangote’s stature not only as a business titan but also as a transformative figure in Africa’s economic development. With a net worth surpassing that of South African billionaire Johann Rupert, whose fortune stands at $13.7 billion, Dangote has solidified his place at the pinnacle of African wealth. As his refinery gains momentum, it is poised to reshape Africa’s energy market, further bolstering his position as a global financial powerhouse.