Aliko Dangote, Africa’s richest man lost $3.6 billion in 2023 amid naira’s devaluation
Aliko Dangote, the prominent Nigerian industrialist and the richest man in Africa, has experienced a notable adjustment in his wealth valuation, primarily attributed to the devaluation of the naira by the Central Bank of Nigeria (CBN). In dollar terms, Dangote encountered a loss of $3.61 billion throughout the year, marking a shift in his financial standing.
Despite the fluctuations in his wealth, Aliko Dangote maintained his status as Africa’s wealthiest individual for an impressive 12 consecutive years. However, the impact of the naira’s devaluation positioned him at the 128th position on the Bloomberg Billionaire Index by the end of the year, a shift from his initial ranking among the top 100 billionaires globally.
Dangote Cement, Nigeria’s second most valuable company and a significant contributor to Dangote’s wealth, witnessed a 21.3% uptick during the year. This notable growth was overshadowed by the challenges posed by the devaluation of the naira. Aliko Dangote’s net foreign exchange (FX) assets, as reported by the Bloomberg Billionaires Index, currently stand at approximately $2.58 billion.
The economic landscape in Nigeria, particularly the foreign exchange market, experienced significant changes in 2023. The Central Bank of Nigeria’s decision to liberalize the foreign exchange regime in June aimed at reviving the economy, led to a substantial devaluation of the naira. All segments of the FX market were merged into the Investors and Exporters window, introducing the willing buyer, willing seller model. Consequently, the naira continued its depreciation against major foreign currencies throughout the year.
Aliko Dangote, a 66-year-old self-made billionaire renowned for his contributions to the cement and sugar industries, serves as the founder and chairman of Dangote Cement. This company stands as the continent’s largest cement producer, with an annual manufacturing capacity of 48.6 million metric tons and operations spanning across eleven African nations. Dangote’s significant ownership of 86% in the publicly traded Dangote Cement reflects his substantial influence in the industry.
In addition to Dangote Cement, Aliko Dangote holds shares in other publicly listed assets, including the United Bank for Africa, Nascon Allied Industries, and Dangote Sugar. The Dangote Group, one of Nigeria’s largest corporations and a vital contributor to the nation’s economy, has demonstrated its commitment to national development. Over the past three years, the conglomerate’s various businesses have contributed significantly to the federal government, paying a total of N474 billion in taxes.
Beyond his industrial ventures, Aliko Dangote’s ambitious $20 billion oil refinery, poised for production, has not yet been factored into his current wealth valuation. This massive project, set to become operational soon, adds a new dimension to Dangote’s business portfolio and is expected to further impact his financial standing positively.
The Dangote Petroleum Refinery, a key component of this ambitious project, recently received its third million barrels of crude oil, a crucial step towards achieving Nigeria’s energy refining capacity and security. The refinery anticipates commencing production of diesel and aviation fuel by mid-January 2024, with plans to manufacture Premium Motor Spirit shortly after. Operating at a rate of 350,000 barrels per day, the Dangote Petroleum Refinery is poised to meet Nigeria’s domestic refined product needs while also having surplus supplies for export, including aviation jets, diesel, kerosene, and gasoline. This development aligns with Aliko Dangote’s broader vision of contributing to Nigeria’s economic growth and energy self-sufficiency.
