Aliko Dangote, Africa’s richest man, has suffered a huge financial blow, with his net worth dropping by $1.4 billion in the last 24 hours.
This current $1.4-billion decrease follows an earlier drop in his fortune this month, which was mostly caused by the depreciation of the Nigerian naira versus the US currency.
Dangote’s net worth has fallen from $15.9 billion to $13.5 billion, a continuous decline from more than $20 billion earlier this month.
The recent reduction in the market value of his huge stakes in Dangote Cement Plc, Africa’s largest cement manufacturer, is the primary cause of this abrupt dip.
The market value of Dangote’s 86 percent ownership in Dangote Cement has plummeted by $1.2 billion in just 24 hours.
This huge reduction reduces the market value from N11.1 trillion ($7.45 billion) to N10.1 trillion ($6.25 billion) as of the time of writing.
The drop in the market value of Dangote’s stake in the major cement company is linked to profit-taking by investors.
This has resulted in a 10% drop on the Nigerian Exchange. Dangote Cement’s shares on the local stock exchange have dropped from N763 ($0.509) to N686.7 ($0.428).
In addition to his investment in Dangote Cement, Dangote makes a significant chunk of his money from his fertilizer business, Dangote Fertilizer, which has the capacity to manufacture 2.8 million tons of urea per year.
His diverse portfolio includes a 72.7 percent share in Dangote Sugar Refinery, a 66.5 percent stake in NASCON Allied Plc, the major salt processing company, and an 86 percent stake in Dangote Cement, his flagship business.
The ongoing erosion in Dangote’s wealth highlights the difficulties experienced by even the most prominent persons in business, stressing the volatility of financial markets and the impact of external forces on individual fortunes.
