Nigerian business tycoon and Africa’s wealthiest individual, Aliko Dangote, has experienced a significant decline in his wealth, totaling N1.45 trillion ($3.12 billion), due to the recent alteration in Nigeria’s exchange rate system. Recent assessments on the Bloomberg Billionaire Index indicate that Dangote’s net worth has plummeted to $17.8 billion as of Wednesday, June 13, 2023, in stark contrast to the $20.9 billion he held just two days prior on June 11.
This sudden decline in wealth has caused him to slip 16 places on the list of the world’s richest individuals, now ranking 94th compared to his previous position at 74th, which he held mere hours before the Central Bank of Nigeria (CBN) announced the devaluation of the naira.
The question arises as to why Aliko Dangote experienced such a substantial loss in just one day. As previously reported by Analyst, on June 14, the Nigerian naira underwent a significant devaluation following the CBN’s decision to unify the multiple exchange rates.
Dangote’s vast investments primarily consist of naira-denominated assets, including prominent companies such as Dangote Cement, Dangote Sugar, and Nascon Allied Industries. Additionally, he holds shares in Dangote Sugar, Nascon Allied Industries, and United Bank for Africa, all of which contribute to his overall wealth. Therefore, the depreciation of the Nigerian naira directly impacts the calculation of Dangote’s fortune in US dollars, resulting in a lower valuation of his wealth when the naira weakens.
It is worth noting that this decline in wealth solely reflects the effects of the recent exchange rate adjustment on Dangote’s financial standing, as he continues to maintain his prominent position as one of Nigeria’s most influential and successful business figures.
