- Aliko Dangote’s empire faces financial strain amid Nigeria’s naira crisis.
- His net worth stands at $10.2 billion, but he lost $706 million (6.50%) as of July 31, 2023.
- The currency turmoil impacted his wealth, with Dangote Cement also feeling the effects.
Aliko Dangote, the revered CEO of Dangote Group and Africa’s wealthiest business magnate, finds himself at the epicentre of a financial storm as Nigeria grapples with an unprecedented naira crisis.
As of July 31, 2023, Dangote’s net worth stands at $10.2 billion according to Forbes, but this figure comes with a heavy price tag. The ongoing naira crisis has caused him to lose a staggering $706 million, equivalent to 6.50% of his fortune.
The currency crisis began with the Central Bank of Nigeria’s decision to float the naira, abandoning its fixed exchange rate with the U.S. dollar. This move led to a sharp depreciation of the naira, plummeting against the U.S. dollar and reaching an intra-day high of N869/$1 at the Investor & Exporter Window – the weakest rate the naira has ever sold for on this market, Nairametrics reported.
At the heart of the financial turbulence is Dangote’s 85% ownership of Dangote Cement, the continent’s largest cement producer.
While the shares of Dangote Cement saw a minor uptick of about 1% since the central bank’s decision to float the currency, the devaluation of the naira has far outweighed this slight gain, significantly impacting Dangote’s overall fortune.
Additionally, Dangote Cement Plc’s second-quarter results revealed a 14% decline in pre-tax profits to N93 billion, with half-year pre-tax profits totalling N239.9 billion versus N264.8 billion in the same period last year.
The company reported an exchange rate loss of N103.8 billion in the second quarter, further exacerbating the impact of the currency crisis on Dangote’s fortune.
As the currency turmoil continues to dominate headlines, Aliko Dangote’s financial journey remains under scrutiny, reflecting the broader economic challenges Nigerian businesses face.
credit: africa.businessinsider.com