Dangote Loses $5 Billion in 24 Hours, Drops Out of First 100 Billionaires in The World

Dangote Loses $5 Billion in 24 Hours, Drops Out of First 100 Billionaires in The World

  • Nigeria's richest man, Aliko Dangote, has dropped far in the billionaires ranking after losing N7 trillion in 24 hours
  • Dangote's wealth dropped following the devaluation of the naira again by the Nigerian government
  • Dangote's wealth declined from $22 billion to N16.6 billion in 24 hours, leading to him dropping out of the first 100 billionaires in the world

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

Nigeria and Africa's richest man, Aliko Dangote, has dropped from 81st to 113th on the list of the world's wealthiest people in 24 hours.

The development follows the loss of $5.4 billion (N7 trillion) suffered by the Nigerian billionaire on Thursday, February 1, 2024.

Dangote Cement, Otedola, Naira
President of Dangote Industries Limited, Aliko Dangote Credit: Bloomberg/Contributor
Source: Getty Images

Dangote's wealth shrinks in 24 hours

Dangote dropped as the Nigerian Exchange Limited (NGX) lost billions after two weeks of bullish run.

Read also

FG devalues the naira again to attract foreign investors, unify official, parallel markets - Report

PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!

Data from the Bloomberg Billionaire Index shows that Dangote's wealth declined from $22 billion to $16.6 billion in 24 hours.

Dangote gained $7.11 billion in January following the excellent performance of Dangote Cement, which rose to become Nigeria's most capitalised company worth N13 trillion.

Nigeria devalues the naira again

Analysts also blamed the crash of Dangote's net worth on the Nigerian government's recent naira devaluation.

The government has reportedly devalued the naira for the second time in eight months as it battles to clear up the chaotic exchange rate and woo foreign investors.

The naira sharply declined in value in the last week of February 2024 in the official and parallel markets after FMDQ changed the methodology used to calculate the official exchange rate, taking it closer to the black market rate.

Read also

Data shows Nigeria's top 3 richest men make over N430bn every day in January 2024

The move is seen as a market-friendly reform introduced by President Bola Tinubu, who floated the naira immediately after he became president in May 2023.

According to reports, the new methodology moved the official exchange rate from N900 to about N1,500 per dollar.

Otedola's investment boosts Dangote Cement shares

The rise in the share price of Dangote stocks came as billionaire investor and Chairman of Geregu Power Plc, Femi Otedola, confirmed the acquisition of about N5 billion worth of the cement company's shares.

The move rapidly boosted the company's share price from N380 per share to N694.

This is the second time Dangote will suffer such a massive loss in eight months. In June 2023, when the Nigerian government newly embarked on the currency reforms, he reportedly lost over $6 billion. His wealth declined from $21 billion to $15 billion.

The Nigerian industrialist was not the only Nigerian investor affected by the fall of the naira. Other billionaires, such as BUA Group Chairman Abdul Samad Rabiu and Globacomm boss Mike Adenuga, also suffered huge losses.

Read also

N8 per share:" Geregu Power shareholders to get N20 billion dividend, Otedola rakes in N15bn

Nigeria's top 3 wealthiest men make over N430bn daily in January 2024

Legit.ng reported that Nigerian billionaires Aliko Dangote, Abdulsamad Rabiu, and Mike Adenuga increased their combined wealth by $15.1 billion (about N13.53 trillion)in January 2024.

Based on Legit.ng's analysis, the three Nigerian billionaires' collective wealth grew by over N436 billion daily throughout the 31 days of January.

The standout performer of January was Aliko Dangote, the founder and chairman of Dangote Industries Plc, who saw his wealth reach near-record highs courtesy of the outstanding performance of his cement company on the Nigerian Exchange.

Source: Legit.ng

Online view pixel