businesselitesafrica.comDec 28, 2023 2:40 PM

How Naira Devaluation Triggers $3.6 Billion Loss for Aliko Dangote
2023 proved to be a challenging year for Aliko Dangote, Africa’s wealthiest individual. Known for his vast business empire, Dangote encountered an unexpected financial dip, with his fortune declining by a massive $3.6 billion due to the naira devaluation. This drop was particularly striking, given that it followed a year of significant financial gains.


The Bloomberg Billionaires Index, tracking the wealth of the world’s 500 richest individuals, shows Dangote’s net worth plunging from $18.7 billion at the year’s start to $15.1 billion. The root of this downturn lies in the Naira’s devaluation, a consequence of the Central Bank of Nigeria’s policy shift in June 2023.

The introduction of the FX-managed float system led to a dramatic decrease in the value of the naira, heavily impacting the valuation of the Nigeria-based assets of Aliko Dangote. This financial scenario paints a vivid picture of the vulnerabilities faced by businesses heavily tied to local economies.

Dangote refinery is a beacon of industrial hope
Amid these fiscal challenges, the ambitious $20-billion petrochemical project of Aliko Dangote stands out as a significant milestone. This refinery, poised to be the largest in Sub-Saharan Africa, marks a critical step forward for Nigeria’s industrial capabilities.




The refinery’s commencement, signified by the arrival of the first crude shipment, heralds a new era in the African energy sector. It is set to process a substantial amount of crude oil daily, with projections of immense revenue generation once operating at full capacity. This venture represents not just a potential financial turnaround for Dangote but also a strategic shift for Nigeria’s energy independence and economic growth.

Dangote’s resilience pushed his path forward
Reflecting on the journey to establish the mega oil refinery, Dangote’s experience encapsulates the essence of resilience in business even amidst the naira devaluation. The project, overshooting its budget and timeline, tested his resolve. Yet, his determination to “sail through” despite the odds demonstrates an unwavering commitment to his vision.

This phase of Dangote’s career, marked by a significant wealth fluctuation and the launch of a groundbreaking industrial project, illustrates the complex interplay between global economic forces and individual entrepreneurial endeavors. As Dangote navigates these challenges, his journey offers valuable insights into the dynamics of wealth, investment, and industrial development in the context of an emerging economy like Nigeria.

If it is so with live trees, how about the dry ones? Buhari killed Nigeria. Let's pray God uses Tinubu to turn things around or...

Almost every adult lost money to the devaluation. To be part of the wealthy in Nigeria now, you need to worth at least one billion naira

Stop trying to be a useless man

SharingIsLife:
If it is so with live trees, how about the dry ones? Buhari killed Nigeria. Let's pray God uses Tinubu to turn things around or...

SharingIsLife:
If it is so with live trees, how about the dry ones? Buhari killed Nigeria. Let's pray God uses Tinubu to turn things around or...

So you're equally saying Tinubu supported him twice to kill Nigeria?

Astimshire:
Stop trying to be a useless man

How am I being useless here? Or, you can't help spewing your very dirty insides?