The resurgence of the Nigerian naira on both official and black markets has coincided with a spectacular gain in wealth for Africa’s richest man, Aliko Dangote.
Based on information gathered from the Bloomberg Billionaire Index, Dangote’s net worth has increased to $17.7 billion.
Before its current growth, Dangote’s fortune had seen some upheaval, which signifies a significant reversal for the business. When the naira was trading at a low point in February, his net worth dropped below $13.5 billion, signifying a loss of several billion dollars in a couple of weeks.
The Naira saw a notable increase versus the US Dollar, breaking through key resistance levels to trade at a five-month high. This performance is consistent with Goldman Sachs’ previous forecasts and coincides with increased geopolitical tensions.
Dangote’s wealth now has a year-to-date gain of more than $2.5 billion and a recent daily gain of $412 million.
The recent uptick in the naira against major currencies has stoked optimism about Africa’s largest economy. Despite the devaluation of the naira that “offset the rising share price of Dangote Cement,” the billionaire Kano citizen has maintained his top ranking.
Since the CBN announced that it has cleared all foreign currency (FX) backlog, the naira has appreciated steadily, posting a year-to-date gain of more than 45% against the dollar, to trade below N1000/$ in certain segments of the unofficial market.
Investors maintain their grip on the tightly floated company despite enduring price wars, inflation, and a currency crisis.
Dangote Cement reported $1.44 billion in sales last year, a 36% increase from the previous year. After taxes, the producer’s profit rose to US$300 million, a 19% increase. Dangote Cement’s market share growth in Africa continued, with pan-African volumes surging by 13% to 11.3 metric tons. Dangote Cement’s stock has gained 93.2 percent so far this year.
The Dangote Group recently opened a Petroleum oil refinery to contribute to Nigeria’s fuel independence. This is a significant step towards the nation’s goal of energy independence.
Located on a peninsula outside of the commercial capital, this refinery is the largest in Africa. However, Bloomberg data shows the Nigerian billionaire’s wealth valuation does not yet include the Dangote refinery.
Nigeria’s dependence on imported petroleum products is projected to moderate with the construction of the oil complex. Despite being the most populous and leading oil producer in Africa, Nigeria imports nearly all of its fuel because of its limited refining capacity.
The Dangote Foundation recently made a substantial donation of N15 billion to alleviate Nigeria’s food crisis among the country’s venerable residents.(Nairametrics)
