Africa’s richest man, Aliko Dangote, has faced a significant setback as his net worth dropped by $845 million in just three days due to a steep sell-off in shares of Dangote Cement on the Nigerian Exchange (NGX).
The billionaire, who holds an 86% stake in Dangote Cement, has seen the company’s share price decline from ₦478.8 ($0.31) at the start of the year to ₦387.9 ($0.25). This sharp decline has slashed the market value of his holdings from $4.53 billion to $3.65 billion, with a 24-hour loss of $390 million.
Net Worth Takes a Hit
According to the Bloomberg Billionaires Index, Dangote’s net worth has dropped from $28.1 billion to $27.2 billion, marking a 3% year-to-date decline. However, Dangote remains Africa’s wealthiest man. His fortune is bolstered by his stake in the newly operational Dangote Oil Refinery, which contributes $18.6 billion to his wealth.
Forbes vs. Bloomberg Valuation
There is a notable discrepancy in wealth estimates between Bloomberg and Forbes. While Bloomberg values Dangote at $27.2 billion, Forbes adopts a more conservative approach, excluding the refinery from its calculations and placing his net worth at $10.6 billion. By Forbes’ metrics, Dangote ranks as Africa’s second-richest person, behind South African billionaire Johann Rupert, whose wealth comes from luxury goods giant Richemont.
Diversified Wealth Portfolio
Dangote’s business empire extends beyond cement and oil:
•Dangote Fertilizer contributes $3.02 billion, producing 2.8 million tonnes of urea annually.
•Dangote Sugar Refinery Plc (72.25%) and Nascon Allied Industries (62.2%) add $208 million and $44.5 million, respectively.
•His cash reserves are estimated at $744 million.
This diversified portfolio solidifies Dangote’s role as the leader of Africa’s largest manufacturing and industrial conglomerate, despite the volatility in public markets.
Lessons in Market Sensitivity
The sharp decline in Dangote Cement’s stock highlights the inherent risks of fortunes tied to publicly traded assets, even for industry giants. While Dangote’s wealth remains resilient due to diversification, the recent losses underscore the fragility of valuations in volatile markets.
Legacy of Resilience
Aliko Dangote’s position as Africa’s industrial titan is unshaken despite the setback. His investments in cement, oil, fertilizer, and sugar remain integral to Nigeria’s economy and Africa’s industrial landscape. As markets stabilize, Dangote’s legacy of innovation and resilience continues to solidify his standing among the world’s wealthiest individuals.
For more stories about Nigeria’s wealthiest individuals and their fortunes, stay tuned to Richlist Nigeria.
