Africa’s Billionaire, Aliko Dangote, has experienced a remarkable increase in his fortune, coinciding with the resurgence of the Nigerian naira in both official and unofficial markets.
According to data compiled from the Bloomberg Billionaire Index, Dangote’s net worth has now reached $15.3 billion.
This surge comes after a turbulent period for Dangote’s fortune, which saw it dip below $13.5 billion earlier this month, signalling a significant turnaround for his company.
Dangote’s resurgence in wealth is attributed to the recent appreciation of the Nigerian Naira against the US dollar, which has garnered praise from investors and market observers, instilling renewed optimism in the local economy.
Following the Central Bank of Nigeria’s announcement of clearing all foreign currency (FX) backlog, the naira has steadily appreciated, gaining over 4% in value against the dollar, and is now trading below N1400/$.
The availability of more dollars has contributed to this upward trend. Emphasising the importance of resolving the foreign exchange backlog, the CBN Governor underlined efforts to enhance trust and confidence in the Nigerian economy.
The Central Bank of Nigeria (CBN) recently announced the successful payment of $7 billion in inherited claims, effectively clearing all valid foreign exchange backlogs.
Analysts at Goldman Sachs Group Inc., Citigroup Inc., and Standard Chartered Plc anticipate that the naira could appreciate by up to 25% against the dollar this year.
This projection is attributed to significant interest rate hikes and other measures implemented to attract foreign investment.
Following the abolition of Nigeria’s long-standing practice of manipulating the exchange rate by newly elected President
Bola Tinubu, alongside other measures aimed at attracting foreign capital and strengthening the country’s economy, the value of the Naira has experienced two declines.
Despite this, investor confidence remains strong in Dangote Cement, the highly valued company owned by the billionaire family.
Despite facing challenges such as price wars, inflation, and currency crises, Dangote Cement reported a 36% increase in sales year-over-year, reaching $1.44 billion last year.
The company’s profit after taxes also rose to $300 million, marking a 19% increase. Dangote Cement continued to gain market share in Africa, with pan-African volumes increasing by 13% to 11.3 metric tons. Currently, Dangote Cement’s stock has surged by 114.7%.
Aliko Dangote is reportedly considering the establishment of an oil trading company, potentially based in London, to oversee the supply of crude and other commodities for his new refinery project in Nigeria.
This strategic move aims to reduce reliance on the world’s largest trading companies, with whom negotiations have been ongoing for months to secure funding and crude oil in exchange for product exports for the massive 650,000-barrel-per-day refinery.
The impending redirection of global oil and gasoline flows due to the refinery’s operations has drawn close scrutiny from the trading community.
In response, the 66-year-old entrepreneur has announced the free distribution of one million ten-kg rice bags across Nigeria in alignment with the Federal Government’s Palliative Program.
This initiative aims to combat hunger and enhance food security for Nigerians. Dangote’s distribution of one million bags of rice is seen as a significant intervention to alleviate the increasing socioeconomic challenges faced by many Nigerians.
The Kano-born billionaire revealed that the Dangote Group invested N5 billion to procure one million bags of 10 kg rice for Nigerians.
He officially commenced the rice distribution on Saturday, simultaneously launching the initiative in Lagos, the headquarters of the group, and Kano State, his hometown.
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