Fakoyejo OlalekanThe wealth of Africa’s richest man, Aliko Dangote, increased by 1.27% on Wednesday, just a day after his networth dropped by -1.78%. The billionaire’s fortune rose following a rise in Dangote Cement’s share demand.
At the end of trading in the Nigerian stock market, Dangote Cement’s share appreciated by 1.85%, rising to N275 per share, as investors’ demand pushed the stock price up from N270.
Following the share growth, the billionaire earned N73.96 billion ($176 million), increasing Dangote’s wealth to $14.1 billion, from the $13.9 billion the cement businessman was estimated to worth a day before.
On Tuesday, Dangote had lost N105.33 billion ($251 million) from his total networth, slumping to 128 spot on the world’s richest list. However, at the end of business hour on Wednesday, his ranking improved to 127.
The growth of his wealth has been slow in recent time due to low investor confidence in the capital market, amid delay in the completion of his oil refinery project, which has been extended twice in the last three years.
There are also reports that the oil refinery project might not be completed this year due to lack of fund that will see the billionaire approach investors in either the bond market or the Nigerian stock exchange.
Dangote is said to need about $1.1 bllion to finance the completion of the refinery, according to Fitch Ratings, “DIL’s refinery project is still on track to be completed by 2023, and requires additional USD1.1 billion capex in 2022 to be partly funded by the new bond.”
Fitch Ratings stated separately, “DIL is planning to establish a local bond programme amounting to USD750 million to partially finance the completion of its refinery and petrochemical plant.
“Dangote Oil Refining Company Limited (DORC) and Dangote Fertiliser Limited (DFL), DIL’s subsidiaries, will be co-obligors under the proposed programme.”
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