Nigerian business magnate and Africa’s richest man, Alhaji Aliko Dangote, has suffered a substantial depletion in wealth amounting to N1.45 trillion ($3.12 billion) following the recent change in the Naira’s exchange rate system.
Checks on the Bloomberg Billionaire Index revealed that Dangote’s net worth significantly dropped to $17.8 billion on Wednesday, June 13, compared to the $20.9 billion he held on Monday, June 11.
The changes pushed him down 16 places from his ranking among the world’s wealthiest men to 94th, compared to the 74th position he held a few hours before the CBN announced the naira devaluation.
Why did Aliko Dangote lose so much in one day?
On Wednesday, June 14, the naira experienced a substantial devaluation following the decision by the Central Bank of Nigeria (CBN) to unify multiple exchange rates.
At the close of trading on Wednesday, the local currency at the official market experienced a significant decline to N664 against the dollar compared to N461 it started the day.
Aliko Dangote’s investments are naira-denominated assets, like Dangote Cement, Dangote Sugar, and Nascon Allied Industries.
Additionally, he holds shares in Dangote Sugar, Nascon Allied Industries, and United Bank for Africa. These investments are connected to his wealth.
Consequently, the depreciation of the Nigerian naira directly impacts the calculation of Dangote’s fortune in U.S dollars. Hence, a weaker naira leads to a lower valuation of his wealth.
