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CBN's Naira Devaluation Slashes Aliko Dangote's Wealth by Over N1.4trn in Hours, as 16 Billionaires Overtake
Capital Market

CBN's Naira Devaluation Slashes Aliko Dangote's Wealth by Over N1.4trn in Hours, as 16 Billionaires Overtake

by  Dave Ibemere 2 min read
  • Nigerian billionaire, Aliko Dangote's wealth, has experienced a significant decline of N1.4 trillion following the devaluation of the naira
  • The devaluation was triggered by CBN's move to unify the country's multiple exchange rate system
  • Most of Dangote's investments, which are linked to his wealth, are based in Nigeria, and the performance of the naira directly affects his wealth

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Nigerian business magnate and Africa's richest person, Aliko Dangote, has suffered a substantial depletion in wealth amounting to N1.45 trillion ($3.12 billion) following the recent change in the naira's exchange rate system.

Checks on the Bloomberg Billionaire Index revealed that Dangote's net worth significantly dropped to $17.8 billion on Wednesday, June 13, 2023, compared to the $20.9 billion he held on Monday, June 11.

Read also

Dangote sees biggest loss in years as $5 billion is slashed off his net worth, Rabiu loses $2.73 billion

Aliko Dangote wealth drop
Aliko Dangote suffers the biggest loss in wealth in a single day. Photo credit: Bloomberg
Source: Getty Images

The changes pushed him down 16 places from his ranking among the world's wealthiest men to 94th, compared to the 74th position he held a few hours before the CBN announced the naira devaluation.

Why did Aliko Dangote lose so much in one day?

As previously reported by Legit.ng, on Wednesday, June 14, the naira experienced a substantial devaluation following the decision by the Central Bank of Nigeria (CBN) to unify multiple exchange rates.

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At the close of trading on Wednesday, FMDQ reports that the local currency at the official market experienced a significant decline to N664 against the dollar compared to N461 it started the day.

Aliko Dangote's investments are naira-denominated assets, like Dangote Cement, Dangote Sugar, and Nascon Allied Industries.

Additionally, he holds shares in Dangote Sugar, Nascon Allied Industries, and United Bank for Africa.

Read also

Naira exchange rate against US dollar rises above N700 at official market after CBN's devaluation

These investments are connected to his wealth. Consequently, the depreciation of the Nigerian naira directly impacts the calculation of Dangote's fortune in US dollars. Hence, a weaker naira leads to a lower valuation of his wealth.

Tony Elumelu and wife make almost N1bn in hours from one Investment

Meanwhile, in another report, Tony Elumelu and his wife, Awele Elumelu, continue to demonstrate the importance of marrying a partner who shares the same vision

In just eight hours, the couple made almost N1 billion from their investment in Transnational Corporation of Nigeria (Transcorp)

Elumelu is a banker and serial investor, while Awele is an accomplished healthcare executive who has distinguished herself in her field

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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