Dangote Loses $2.6 Billion as Naira Emerges as World’s Worst-Performing Currency
- Nigeria’s richest man, Aliko Dangote, net worth had shrunk by $2.6 billion due to the naira’s depreciation
- Dangote, who was worth $17.7 billion in April, now has an estimated net worth of $15.1 billion, showing a $2.6 billion loss
- Analysts have attributed the decline in Dangote’s wealth to the naira’s poor performance against the dollar
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, has seen his net worth plummet by $2.6 billion after surging in April due to the naira’s recovery.
According to data from the Bloomberg Billionaire Index, the Chairman of the Dangote Group is now worth an estimated $15.1 billion.
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The naira reverses gains
The decline follows a brief rise in April following efforts by the Central Bank of Nigeria (CBN) to clear FX backlog obligations, which boosted the naira’s performance against major currencies.
The naira’s recovery propelled Dangote’s net worth to $17.7 billion but was short-lived. The Nigerian currency began to descend again, emerging as the world’s worst-performing currency.
Data from Bloomberg’s Billionaire’s Index says the Nigerian billionaire’s net worth is now estimated at $15.1 billion, indicating a loss of $2.6 billion from its height of $17.7 billion recorded on April 16, 2024.
The recent loss of the naira has reversed Dangote’s yearly gains from an increase of $2.6 billion recorded on April 16, 2024.
Dangote's major assets remain intact
According to reports, the decline is due to the impact of the naira’s fall on his 86% stake in Dangote Cement and his holdings in Dangote Sugar, NASCON Allied Industries, and the United Bank for Africa (UBA).
The report says that Dangote’s most priced privately held asset, Dangote Fertilizer, with a 2.8 million tonnes annual capacity of urea, remains steady at $5.15 billion. Dangote Cement, valued at $6.7 billion, is his second most significant asset.
Analysts have called on the CBN to raise interest rates to cushion the effect of the naira slide on bank savings.
Meanwhile, the gap between official and parallel markets has narrowed to N3 as the Nigerian currency depreciates without continued interventions by the Central Bank of Nigeria (CBN) in the FX market.
In the last three weeks, the apex bank has failed to sell forex to Bureau de Change (BDC) operators, leading to the depreciation of the local currency in the parallel segment of the FX market.
The official and parallel markets close the gap
On Friday, May 10, 2024, the naira dropped in value to N1,479 per dollar in the parallel market.
The current value represents a 1.38% depreciation from the N1,450 recorded on May 9, 2024.
BDC operators quoted the buying rate of the dollar at N1,430 and the selling price at N1,470/
Meanwhile, in the official market, the naira depreciated by 0.45% to N1,466 on Friday, May 10, 2024.
Data from the FMDQ Exchange reveals that the naira recorded a high of N1,490 per dollar and a low of N1,322.
The current figure leaves an exchange rate gap of N3.69 per dollar between the official and parallel markets.
Dangote loses $8.7 billion to naira’s crash
Legit.ng earlier reported that 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.
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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Source: Legit.ng
