Africa’s richest man Aliko Dangote loses $3.2 billion in a day as Nigeria’s currency plunges

In a single day, Africa’s wealthiest individual, Aliko Dangote, witnessed a staggering decline in his net worth amounting to over $3 billion.

The steep decline was a direct consequence of Nigeria’s currency hitting a record low after the central bank auctioned dollars at a rate nearly 30 percent weaker than the tightly controlled official market.

According to the Bloomberg Billionaires Index, Dangote’s net worth plummeted from $21 billion on June 14 to $17.8 billion at present, marking a $3.2 billion loss within a mere 24 hours.

Despite this significant setback, Aliko Dangote, the founder of Dangote Group, maintains his position as not only the richest man in Africa but also the wealthiest Black billionaire worldwide. However, his ranking slipped from the 75th to the 94th position on the Bloomberg Billionaires Index due to the recent decline.

The devaluation of the Nigerian currency severely impacted Aliko Dangote’s assets, including his 86 percent stake in Dangote Cement, his holdings in Dangote Sugar Refinery, and his private interests in Dangote Industries.

These holdings contributed to his substantial net worth loss of $3.2 billion, resulting in year-to-date wealth losses of $862 million. The depreciation of the naira was instigated by Nigeria’s central bank, which allowed the currency to drop by as much as 36 percent on the official market.

President Bola Tinubu recently suspended the central bank governor, citing concerns over the multiple exchange rates implemented by the bank. These exchange rates had created foreign currency shortages, impeding investors from repatriating funds from Africa’s largest economy.

On Wednesday, trading restrictions on the official market were lifted, causing the naira to reach an all-time low of 750 to the dollar, a significant decrease from the previous day’s rate of 477 naira to the dollar.

Source: Billionaires. Africa