Aliko Dangote, Africa’s richest man and the world’s richest Black individual, has seen his fortune plummet, losing about $10 billion in six months.
Dangote’s fortune, which reached a record high of $23.3 billion on Jan. 30, 2024, has since decreased to $13.8 billion, according to the Bloomberg Billionaires Index.
This downturn, triggered by the devaluation of the Nigerian naira and a market pullback on the Nigerian Exchange (NGX), has had a severe impact on his financial situation.
Aliko Dangote’s fortune has suffered as a result of the naira’s depreciation and a recent drop in the share prices of his publicly traded companies on the NGX.
His net worth has decreased by $9.5 billion in the last six months, resulting in a year-to-date loss of $1.33 billion, a sharp contrast to the $8.17 billion gain he reported at the start of this year.
The depreciation of the Nigerian naira has been a significant contribution to Dangote’s financial difficulties. nearly the past year, the naira has lost nearly 53% of its value due to changes implemented by Nigerian President Bola Tinubu to remove the currency’s long-standing peg.
This devaluation had a substantial impact on Dangote’s interests, particularly Dangote Cement Plc, where his 86 percent ownership was worth $5.35 billion, down from $12.4 billion.
Dangote’s oil and gas company, the Dangote Oil Refinery, is having challenges. Plans to begin petrol production for the Nigerian market in August have been delayed due to challenges in obtaining crude oil. The refinery is now working at just over half capacity.
To settle the situation, President Tinubu authorized the Nigerian National Petroleum Corporation (NNPC) Limited to sell crude to the refinery in naira.
The Nigerian government has approved a scheme to sell crude oil to the Dangote Refinery in naira to stabilize fuel prices and the dollar-naira exchange rate.
The proposal will provide 450,000 barrels for domestic usage in naira, with Dangote’s refinery serving as a prototype project.
The refinery requires 15 cargoes of crude per year, totaling $13.5 billion, and will initially get four cargoes from NNPC.
While the refinery’s problems underscore the inherent dangers of operating in an emerging economy, Dangote’s diverse business portfolio mitigates the impact.
Despite a hard socioeconomic environment, Dangote Cement Plc, the Nigerian billionaire’s cement colossus, continues to beat expectations, increasing its market share across Africa and solidifying its position as a regional leader.
The company experienced an 85.1 percent growth in sales to $1.1 billion in the first half of 2024, owing to greater market activity and enhanced operational efficiency.