Aliko Dangote, Africa’s wealthiest individual, has recently encountered a significant financial hurdle, with his net worth plummeting by $1.4 billion within a mere 24-hour span. This downturn is a stark reminder of the fluctuating nature of the business realm, even for someone as influential as Dangote.
The recent $1.4-billion reduction in Dangote’s fortune is part of a broader trend this month, primarily linked to the devaluation of the Nigerian naira against the U.S. dollar. Consequently, Dangote’s net worth has dwindled from $15.9 billion to $13.5 billion, a considerable drop from his earlier valuation of over $20 billion this month.
The primary catalyst for this abrupt decline is the diminishing market value of Aliko Dangote’s extensive holdings in Dangote Cement Plc, Africa’s leading cement producer. In the past day alone, the market value of Dangote’s 86-percent stake in the company has fallen by $1.2 billion. This reduction has brought the market value from N11.1 trillion ($7.45 billion) to N10.1 trillion ($6.25 billion).
Investors’ profit-booking activities are the main reason behind the depreciation in the market value of Dangote’s stake in the prominent cement manufacturer. As a result, there has been a 10-percent drop on the Nigerian Exchange, with Dangote Cement shares declining from N763 ($0.509) to N686.7 ($0.428).
Apart from his interests in Dangote Cement, Dangote’s wealth also stems from his fertilizer plant, Dangote Fertilizer, which can produce 2.8 million tonnes of urea annually.
His diverse portfolio includes a 72.7-percent stake in Dangote Sugar Refinery, a 66.5-percent stake in the leading salt processing company NASCON Allied Plc, and an 86-percent ownership in Dangote Cement, his flagship company.