How Aliko Dangote gained $7.11 billion in January 2024

In the dynamic world of business and finance, few stories are as compelling as the remarkable turnaround experienced by Aliko Dangote, Nigeria’s and Africa’s wealthiest individual. After a challenging 2023, where Aliko Dangote witnessed a decline in his net worth, January 2024 emerged as a month of unprecedented financial recovery for him. 

This article delves into the journey of Aliko Dangote’s financial resurgence, examining the factors that contributed to his astonishing $7.11 billion gain in just one month.

Aliko Dangote, the esteemed founder of the Dangote Group and the majority shareholder of Africa’s largest cement producer, Dangote Cement Plc, saw a significant increase in his net worth at the beginning of 2024. According to the Bloomberg Billionaires Index, Aliko Dangote’s wealth experienced a meteoric rise from $15.1 billion on January 1 to a staggering $22.2 billion by the end of January, marking a $7.11 billion increase.

The role of the Nigerian exchange in Dangote’s fortune

This impressive increase in Aliko Dangote’s fortune is largely attributed to the positive market sentiment on the Nigerian Exchange. The bullish market trend substantially lifted the market value of his stakes in publicly listed companies. His 86 percent ownership in Dangote Cement Plc played a crucial role in this financial leap.

Moreover, Aliko Dangote’s investments in other sectors, such as Dangote Sugar Refinery and NASCON Allied Industries, which represent his ventures in sugar and salt, have also shown considerable growth since the year’s start.

Dangote Cement Shares became a spectacular rise

In January, shares of Dangote Cement experienced a remarkable surge, increasing by over 130 percent. The share price rose from N319.9 ($0.267) on January 1 to N763 ($0.639) on January 31. This surge significantly enhanced the value of Aliko Dangote’s 86 percent stake in the company, now worth $12.4 billion, a substantial portion of his $22.2 billion fortune. Consequently, Aliko Dangote is now ranked as the world’s 81st richest person and the richest Black individual globally.

The strategic investment by billionaire Otedola

This upswing in Dangote Cement shares coincides with Nigerian billionaire Femi Otedola’s strategic investment in the company. Otedola’s investment reflects his confidence in Dangote Cement’s ability to generate foreign exchange for Nigeria and his commitment to supporting businesses that contribute to the country’s economic strength.

Otedola highlighted Dangote Cement’s unique advantage with two export terminals, offering a significant opportunity to earn foreign exchange, which is vital for Nigeria’s economy. Additionally, the recent expansion of Dangote Cement, including the opening of a new six-million-tonne plant in Itori, Ogun State, not only boosts its export capacity but also underlines its role in promoting Nigeria’s economic diversification.