Connect with us

Business News

Africa’s richest man posts a daily loss of $681 million as Dangote Cement stock lost 8.5%

Published

on

Aliko Dangote President Dangote Group scaled e1689110824668

Africa’s richest tycoon experienced a slight moderation in his wealth as Dangote Cement, the country’s most capitalized stock, posted a loss of 8.49%, closing at N334.00 after Friday’s trading session.

The billionaire’s daily loss amounted to $681 million.

Rising global oil prices are not helping foreign exchange flow into the country amid widespread oil theft coupled with a broader decline in foreign direct investment, both trends putting pressure on the naira.

According to the Bloomberg Billionaire Index, Dangote’s asset loss since the beginning of the year amounted to $1.96 billion.

The billionaire’s fortunes fell in dollar terms even as local stock markets and government bonds hit record highs as investors were unfazed by the devaluation of the naira.

The naira has lost nearly half its value against the US dollar in official markets since June when the new administration led by President Tinubu encouraged the central bank to stop maintaining high exchange rates.

However, recent stock buybacks and expansions have investors still interested in Nigeria’s most valuable company, as it plans to expand its production capacity through the construction of a factory new cement, 6 million tons capacity integrated plant at Itori, Ogun State.

According to Dangote Cement Group Managing Director Arvind Pathak, the new plant, which is nearing completion, will increase Dangote Cement’s domestic production in Africa.

The 66-year-old billionaire controls Dangote Industries, a closely held conglomerate. The Lagos, Nigeria-based company is the largest cement producer in sub-Saharan Africa. It is also concerned with sugar, salt, oils, fertilizers, and packaged foods.

Dangote Cement has a production capacity of 48.6 million tons per year and is present in 10 countries in Africa. The tycoon also owns six residential and commercial properties in Lagos.

These will be valued using a capitalization method using rental income provided by Dangote spokesperson Anthony Chiejina and CBRE Broll Nigeria valuation ratios.

The $19 billion refinery commissioned by Former President Buhari is not yet operational and was therefore not included in his wealth assessment. Starting in October,

Dangote’s refinery will start producing up to 370,000 barrels per day of diesel and jet fuel, according to S&P Global Platts, which sets benchmark pricing for global commodity markets.

The refinery’s pipeline infrastructure, which spans 1,100 kilometres and can transport three billion standard cubic feet of gas daily, is thought to be the largest in the world.

Meanwhile, Dangote recently stated that youth employment was key to the country’s development. Dangote, the richest man in Africa, who disclosed this in Lagos during the induction of a group of new trainees graduating from the Dangote Graduate Trainee Program, emphasized that continued investment in the sectors

The importance of the economy to create jobs and promote sustainable employment is irreversible.

Speaking to the participants, Dangote outlined the Dangote Group’s roadmap, explaining that the group transformed from a commodity trading company to a manufacturing company with the aim of contributing to industrial development. country’s industry, thereby repositioning Nigeria within the African industrial landscape.

He explained that the group’s mission is to touch people’s lives by providing their basic needs, emphasizing that this can only be achieved through the production of goods that meet the needs of people.


Download Nairametrics App for breaking news and market intelligence.
    app store banner

Trending