The recent devaluation of the Nigerian naira by the Central Bank of Nigeria (CBN) has had a significant impact on the wealth of Aliko Dangote, Africa’s richest man, and his compatriot Abdulsamad Rabiu.
According to the Bloomberg Billionaire Index, their combined net worth has decreased by $5.85 billion. Specifically, Dangote, the founder of Dangote Group and a major shareholder in Dangote Cement and Dangote Sugar, has seen his estimated wealth decline by $3.12 billion.
This reduction in wealth can be attributed to the effects of the unification of multiple exchange rates on the value of his cement and food businesses. As a result, Dangote’s net worth has dropped from $20.92 billion to $17.8 billion.
Similarly, Rabiu, the founder of BUA Group, majority shareholder of BUA Cement and BUA Foods also saw his net worth fall to $5.54 billion from $8.27 billion, after losing $2.73 billion to the naira devaluation.
Both Dangote Group and BUA Group are significantly exposed to the Nigerian market, where their companies predominantly operate, as their revenue is majorly in naira denominations.
Nigeria previously reported that the CBN has adopted the ‘willing seller, willing buyer’ model, which led to the devaluation of the naira by 40.7 percent or N192.37 kobo on Wednesday.
This increased the dollar exchange rate to N664.04/$1 at the end of trading in the official market on Wednesday, from N471.67/$1 reported on Tuesday.
Meanwhile, on Thursday, the value of the naira further declined by N38.15 kobo or 5.74% to N702.19/$1, up from the N664.04/$1 the dollar closed the previous day.