Title: Aliko Dangote, the fall of a titan: the impacts of the devaluation of the Naira
Introduction :
Aliko Dangote, a Nigerian billionaire and Africa’s richest man, has recently experienced a major drop in his fortune. Estimated at $21.2 billion at the start of 2023, his wealth has shrunk by nearly $6 billion to $15 billion. This plunge is mainly due to the devaluation of the Nigerian currency, the Naira. In this article, we will explore the reasons for this downfall and the consequences for Dangote.
An inevitable devaluation:
The devaluation of the Naira was caused by the abolition of the dual exchange rate in Nigeria. This measure led to a depreciation of the national currency, which directly impacted the value of Dangote’s Naira-denominated assets. This devaluation was the largest since 2014 and had a significant impact on the billionaire’s fortune.
A diversely composed fortune:
Aliko Dangote’s fortune consists partly of cash comprising different currencies, and partly of the value of his assets in various businesses including the Dangote Cement Group and its fertilizer factory. Dangote’s stakes in these companies are estimated at $7.5 billion and $5.4 billion, respectively.
The impact of the fall on Dangote:
Despite this significant drop in his fortune, Aliko Dangote remains the richest African. Its status is partly linked to the future commissioning of its refinery and its fertilizer plant. Once operational, these facilities should generate significant income for the billionaire and allow him to maintain his position at the top of the ranking of African fortunes.
Conclusion :
The devaluation of the Naira had a significant impact on the fortunes of Aliko Dangote, Africa’s richest man. Despite a fall of almost 6 billion dollars, he still remains at the top of the ranking of African billionaires. The future performance of its businesses, including its refinery and fertilizer plant, will be key to maintaining its leadership position