Nigeria’s forex crisis shakes Aliko Dangote’s empire

Aliko Dangote, the revered CEO of Dangote Group and Africa’s wealthiest business magnate, finds himself at the epicentre of a financial storm as Nigeria grapples with an unprecedented naira crisis.

At the heart of the financial turbulence is Dangote’s 85% ownership of Dangote Cement, the continent’s largest cement producer.

While the shares of Dangote Cement saw a minor uptick of about 1% since the central bank’s decision to float the currency, the devaluation of the naira has far outweighed this slight gain, significantly impacting Dangote’s overall fortune.

Additionally, Dangote Cement Plc’s second-quarter results revealed a 14% decline in pre-tax profits to N93 billion, with half-year pre-tax profits totalling N239.9 billion versus N264.8 billion in the same period last year.

The company reported an exchange rate loss of N103.8 billion in the second quarter, further exacerbating the impact of the currency crisis on Dangote’s fortune.

As the currency turmoil continues to dominate headlines, Aliko Dangote’s financial journey remains under scrutiny, reflecting the broader economic challenges Nigerian businesses face.

The billionaire tycoon’s ability to weather these stormy waters will be closely observed by investors, policymakers, and citizens alike.