The Dangote Group, which owns many businesses, got a big chunk of money in the latest Central Bank of Nigeria (CBN) auction. They managed to buy $105.33 million in foreign exchange (FX) bids. This makes up about 13% of the $876.26 million the CBN offered to various banks.
Banks like Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank helped the Dangote Group get most of this FX. These banks are also in the top list of banks getting the most FX from CBN’s auction. They played a key role in bringing in important raw materials, spare parts, and equipment needed to keep Dangote’s factories running smoothly.
Dangote Sugar Refinery Got the Most FX
- Among the businesses owned by Africa’s richest man, Aliko Dangote, the Dangote Sugar Refinery got $87.42 million in FX. For instance, to buy 16,000 metric tons of Brazilian raw sugar, one bid alone was $10.96 million.
- Dangote Cement PLC, a leading company in Africa’s cement market, got $9.03 million. They used the money mainly to buy spare parts for their cement plant machinery.
- Dangote Oil & Gas Company Limited received $5.33 million. They used this FX to buy gasoil and low-pour fuel oil (LPFO), which are important for energy production. One big bid was $2.5 million to buy 15,000 metric tons of gasoil.
- Dangote Industries Limited got $2.5 million, and Dangote Agro Sacks Limited got $941,600.96. The $2.5 million for Dangote Industries was for importing gas turbines.
- Smaller amounts went to Dangote Sinotruk West Africa Limited, which got $7,161.50, and Dangote Coal Mines Ltd, which received $104,568.68.
Much of the FX given to Dangote’s companies was used to import spare parts for various manufacturing and industrial processes. For example, Dangote Agro Sacks Limited used their FX for spare parts needed for textile machinery and manufacturing equipment.
Important Things to Know
Newslodge reported earlier that Dangote Group’s companies lost around N1.21 trillion in market value in July 2024. During this month, the share prices of these companies fell sharply.
For example, the share prices of Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries on the NGX all went down by 10%, 13.6%, and 19.8% respectively in July.
These market losses also affected Aliko Dangote’s net worth. Dangote owns large parts of these companies. He holds an 86% stake in Dangote Cement Plc, a 72.2% stake in Dangote Sugar Refinery, and a 62.19% stake in NASCON. This resulted in a loss of N1.02 trillion (~$680 million) to his personal wealth.
According to the Bloomberg Billionaires’ Index, his net worth was about $14.8 billion on July 1, 2024, but it dropped to $13.6 billion by the end of the month.
Most of Dangote’s wealth comes from his publicly traded companies. His private assets, like the Dangote fertilizer plant, are worth about $5.1 billion. His main asset, Dangote Refinery, has not been valued yet because of ongoing issues.
Recently, the Federal Government approved President Bola Tinubu’s plan to sell crude oil to Dangote Refinery and other new refineries in Naira. This big move might help to stabilize fuel prices and the dollar-naira exchange rate in Nigeria.