Africa’s list of female billionaires continues to flatline as Nigerian fashion designer turned oil mogul, Folorunsho Alikija’s net worth has fallen from $1 billion. This downward trend started last year with Angola’s Isabel Dos Santos who has lost her fortune following a series of legal charge. Mrs Alakija’s net worth fall has been linked to the lower oil prices in Nigeria, considering that she earns the bulk of her wealth from her oil and gas company.
About Her Oil and Gas Company
Mrs Alakija is the Vice Chairperson of Famfa Oil Exploration Company, which was established in September 1991 and began operations on the 10th of August 1993. The company’s main source of revenues is the Agbami Oil Fields, one of Nigeria’s largest deepwater oil offshore discoveries.
Famfa Oil partners with other oil and gas exploration companies in Nigeria such as Chevron and Petrobras.
Mrs Alakija gives back to the poor – mostly widows and orphans in Nigeria through her NGO, The Rose of Sharon Foundation (RoSF) which provides 0% interest loans to help them launch their businesses. According to the foundation, over 4.262 widows and 20,000 indirect family members have been reached across the six geopolitical zones in Nigeria.
Why Oil Prices Fall
Oil is a commodity, and as such, its price fluctuates more than other stable investments such as stocks and bonds. Investopedia lists the following as factors that affect the rise and fall of oil prices.
- Oil prices are determined by a number of factors, including production decisions taken by producers such as the Organization of Petroleum Exporting Countries (OPEC), autonomous petro-states such as Russia, and private oil-producing companies such as ExxonMobil.
- Oil prices are determined by supply and demand, just like every other commodity.
- Natural disasters that could interrupt development, as well as political instability in oil-producing nations, all have an effect on pricing.
- Production costs, as well as storage space, have an effect on prices.
- The trajectory of interest rates may also affect the price of commodities, but it has a smaller effect.
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