Emmanuel Ochayi
Africa’s wealthiest industrialist, Aliko Dangote, has experienced a notable decline in his wealth portfolio as Dangote Cement, Nigeria’s most capitalized stock, endured a staggering loss of 8.49%, closing at N334.00 following Friday’s trading session.
Dangote’s daily financial setback amounted to a substantial $681 million. This setback comes against the backdrop of rising global oil prices failing to bolster foreign exchange inflow into the country, amidst prevalent oil theft and a broader decline in foreign direct investment. Both of these factors have continued to exert pressure on the Nigerian naira.
Join our WhatsApp ChannelAccording to data from the Bloomberg Billionaire Index, Dangote’s wealth erosion since the beginning of the year now stands at a significant $1.96 billion. Remarkably, this devaluation in dollar terms has not deterred local investors, with Nigerian stock markets and government bonds hitting record highs, seemingly unfazed by the naira’s depreciation.
The naira has witnessed a nearly 50% loss in value against the US dollar in the official market since June when President Tinubu’s administration decided to float the currency.
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Nevertheless, recent stock buybacks and expansion efforts have continued to pique investors’ interest in Nigeria’s most valuable company.
Dangote Cement’s ambitious plans include the construction of a new 6-million-ton-capacity integrated plant in Itori, Ogun State, which is nearing completion. According to Arvind Pathak, Group Managing Director of Dangote Cement, this new facility is poised to significantly boost the company’s domestic production in Africa.
The 66-year-old billionaire retains control over Dangote Industries, a conglomerate with diverse interests spanning cement, sugar, salt, oils, fertilizers, and packaged foods. Dangote Cement, a subsidiary of the conglomerate, boasts a production capacity of 48.6 million tons per year and operates in 10 African countries.
It’s worth noting that Dangote also holds substantial real estate assets in Lagos, with their valuation to be determined using a capitalization method based on rental income.
Despite his immense wealth, Dangote’s $19 billion refinery, commissioned by Former President Buhari, remains non-operational and therefore hasn’t been factored into his wealth assessment.
However, starting in October, the refinery is set to produce up to 370,000 barrels per day of diesel and jet fuel, a development closely monitored by S&P Global Platts, a benchmark pricing authority in global commodity markets.
Dangote’s refinery also boasts a massive pipeline infrastructure, spanning 1,100 kilometers and capable of transporting an impressive three billion standard cubic feet of gas daily, making it one of the world’s largest.
In a recent statement, Dangote underscored the importance of youth employment for Nigeria’s development. During the induction of new trainees graduating from the Dangote Graduate Trainee Program in Lagos, he emphasized the pivotal role of continued investment in sectors that generate jobs and sustainable employment opportunities.
Dangote’s vision for the Dangote Group centers on industrial development and contributing to Nigeria’s industry, with the ultimate aim of reshaping the country’s position within the African industrial landscape.
He stressed that meeting people’s basic needs through the production of essential goods is at the core of the group’s mission.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
