Despite Earning $50.9 Million in 24 Hours, Dangote Loses $8.7 Billion to Naira’s Crash against USD
- Aliko Dangote has lost about $8.7 billion due to the depreciation of the Nigerian currency, the naira
- Dangote is currently ranked as the 135th wealthiest man in the world following a dip in his fortunes
- Despite the drop, Dangote earned almost $51 million in 25 hours as the share price of Dangote cement rallied on the NGX
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria and Africa’s richest man Aliko Dangote’s net worth has plummeted by a whopping $8.7 billion due to Nigeria’s currency challenges.
The billionaire’s net worth has dropped below $15 billion after his wealth peaked above $23 billion at the end of January 2024.
Source: Getty Images
Naira devaluation impacts Dangote's wealth
Checks by Legit.ng on the Bloomberg Billionaire’s Index show that Africa’s wealthiest person suffered a loss due to the crash of the Nigerian currency, the naira, against the US dollar.
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Dangote suffered a setback as the share price of Dangote Cement dropped on the Nigerian Exchange (NGX), contributing to the decline in his wealth.
The recent naira devaluation affected Dangote and other Nigerian billionaires' net worth.
Dangote’s net worth stands at $14.6 billion from $23.3 billion as of January 2024, showing an $8.7 billion decline, which is influenced by the naira’s woes.
After closing the country's chaotic multiple exchange rate windows, the Nigerian government devalued the local currency to align closely with the parallel market.
However, he earned about $50.9 billion in the 24 hours preceding March 12, 2024. Still, it was not enough to propel him above his current ranking of 135 wealthiest men in the world from the 86th position he occupied in January.
Dangote Cement emerges as Africa's largest
Dangote earns most of his wealth from Africa’s largest cement manufacturer.
Analysts say cement companies are experiencing low sales due to a recent price hike caused by inflationary pressures.
Top cement manufacturers in Nigeria agreed to reduce prices after meeting with the Nigerian government.
The billionaire, whose 650bpd-capacity refinery began production in January, holds an 86.6% stake in Dangote Cement and 72.7% in Dangote Sugar Refinery, among other investments under the Dangote conglomerate.
The Nigerian billionaire is considered the country’s biggest employer of labour after the government. He remains one of Africa’s wealthiest persons.
French billionaire overtakes Jeff Bezos
Meanwhile, Legit.ng reported that the 10 wealthiest people in the world, as of Thursday, February 21, 2024, were worth over $1.44 trillion.
This is according to the Bloomberg Billionaire Index data, a daily tracker of the world’s wealthiest people. The data showed that as of Thursday, March 7, there were no billionaires worldwide with a net worth of $200 billion.
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Source: Legit.ng
