Aliko Dangote Faces a $3.12 Billion Decline, but Maintains Dominance for the 12th Consecutive Year

Aliko Dangote, the renowned Nigerian business tycoon, has once again emerged as Africa's wealthiest individual, holding this prestigious title for an unprecedented 12 consecutive years. 

A Decline in Fortune and Ranking

However, Dangote's fortune experienced a significant setback, witnessing a staggering decline of $3.12 billion, ultimately settling at $17.8 billion. This decline can be attributed to the recent unification of the naira's exchange rate system, sending shockwaves through the financial landscape.

Remarkably, the 66-year-old billionaire, hailing from the city of Kano, has witnessed a drastic descent from the 74th position to the 94th position on the esteemed list of the world's richest individuals. Such a dramatic plunge in rankings is unparalleled in the history of Nigerian billionaires, leaving an indelible mark on the Bloomberg Billionaires Index.

Impact of the Naira's Exchange Rate and Investment Performance

The devaluation of the naira exchange rate and the performance of investments have exerted a profound impact on Dangote's financial standing. At the culmination of trading activities in Lagos, the naira depreciated by an astounding 29%, settling at N664 against the US dollar, according to the local exchange operator FMDQ. Adding to the complexity, Nigeria's central bank established a sell-dollar exchange rate for exporters and investors at N610.20, marking a substantial 22% decrease from the preceding day's price.

Dangote Cement: The Backbone of Dangote's Wealth

Interestingly, Dangote's colossal fortune experienced moderation in dollar terms, despite the simultaneous rise of the local stock market and government bonds, which elicited fervent enthusiasm among investors due to President Bola Tinubu's progressive reforms. Notably, the majority of Dangote's wealth emanates from his ownership of a remarkable 86% stake in the publicly listed company, Dangote Cement.

This influential businessman's involvement in Dangote Cement is manifested through direct ownership of shares as well as his conglomerate, Dangote Industries. It is important to mention that the current valuation does not encompass the yet-to-be-operational $19 billion refinery commissioned by President Buhari, which undoubtedly possesses substantial potential.

Furthermore, Dangote's expansive business endeavors extend beyond Dangote Cement and encompass prominent entities such as Dangote Sugar, Nascon Allied Industries, and United Bank for Africa. His interests in these public corporations are held both directly and through his multifaceted Dangote Industries, which also encompasses closely affiliated companies operating in food manufacturing, fertilizer production, petroleum, and various other industries.

Impressive Ventures and Property Portfolio

One of Dangote's remarkable achievements includes a state-of-the-art fertilizer plant with an astonishing annual capacity of 2.8 million tons of urea. Its valuation, determined by KPMG through discounted cash flow analysis, has been corroborated by external analysts, further cementing its significance in the business landscape.

Moreover, Dangote's opulent portfolio boasts ownership of six notable residential and commercial properties situated in Lagos, Nigeria's bustling economic hub. These properties, whose valuation relies on a capitalization method employing rental income figures provided by Dangote's spokesperson Anthony Chiejina and CBRE Broll Nigeria's esteemed valuation rate, contribute to the magnate's vast wealth and influence.

The performance of Dangote Cement shares has proven to be immensely rewarding for astute investors. In 2020, those who tactfully acquired and subsequently divested themselves of Dangote Cement shares experienced a staggering return of 140.26% through price appreciation alone. Impressively, the first half of 2023 witnessed a further growth of over 11%, solidifying the company's reputation as a lucrative investment option.

To further exemplify the company's success, Dangote Cement declared a dividend of N20.00 per share for its 2022 earnings, leading to an unprecedented surge in bids for its shares. This notable development attests to the company's financial stability and attractiveness to prospective investors.

Aliko Dangote's Unyielding Spirit and Impact

In summary, despite facing a substantial decline in his wealth, Aliko Dangote reigns supreme as Africa's wealthiest individual for the 12th consecutive year. The interplay of the naira's exchange rate unification and the performance of his diverse investments has undoubtedly contributed to the captivating narrative surrounding Dangote's financial journey. As he navigates through these intricate financial landscapes, Dangote's indomitable spirit and entrepreneurial prowess continue to leave an indelible mark on the business world.