Aliko Dangote Loses $2.6 Billion as Naira Depreciates to Lowest-Valued Currency

Aliko Dangote, Africa’s richest individual, has witnessed a significant erosion of his wealth, with a loss of $2.6 billion. This decline comes after a brief period in April where his net worth surged due to a temporary rally in the Nigerian naira. 

As the founder and chairman of the Dangote Group, the continent’s most extensive industrial conglomerate, Dangote’s financial movements are closely watched.

Dangote’s Rapid net worth rise and sudden fall

Earlier in April, optimism soared as the Central Bank of Nigeria (CBN) took decisive actions to clear a massive backlog of dollar obligations. These measures briefly bolstered the naira, lifting Dangote’s fortune to a high of $17.7 billion. However, this gain was not to last. The naira, now deemed the world’s weakest currency, has significantly depreciated, erasing the gains from the earlier rally.

As of today, Aliko Dangote’s net worth stands at $15.1 billion, a sharp fall from its mid-April peak. The primary driver behind this decline is the naira’s weakness, which has adversely affected Dangote’s major holdings in sectors like cement, sugar, and banking. Particularly, his 86 percent stake in Dangote Cement and investments in other subsidiaries like Dangote Sugar and Nascon Allied Industries have suffered due to the currency’s instability.

Despite these challenges, not all is bleak in Dangote’s portfolio. Dangote Fertilizer, a significant asset with an annual production capacity of 2.8 million tonnes of urea, remains valued at $5.15 billion. Alongside Dangote Cement, valued at $6.7 billion, it represents the cornerstone of his wealth.

The recent slump of the naira to a new low of 1,466.31 per dollar has renewed pressure on the CBN to consider a rate hike. The depreciation follows Nigerian President Bola Tinubu’s decision to relax foreign exchange controls, which has resulted in the naira losing about 68 percent of its value against the US dollar since June. 

With a policy meeting scheduled for May 21, many are bracing for potential economic shifts that might include another increase in interest rates.