Africa’s pride and its richest man, Alhaji Aliko Dangote, 57, has lost $10.1 billion (N2.08 trillion) of his $25 billion (N5.150 trillion) fortunes…in the last three months.
The soft-spoken, Kano-born mogul who is the king of cement, flour, salt, sugar and more, has suffered heavy blows below the belt since the plummeting of the stock exchange and tumbling of the naira began in November 2014.
And on Monday, February 16, 2015, according to Forbes rich list, Dangote was worth $14.9 billion (N3.06 trillion), and stood at number 63 from number 23.
The lack lustre leadership in Nigeria dominated by insecurity because of the February elections, now rescheduled to March and April, exit of foreign investors, rage of insurgents, falling oil prices and bungee-jump of the naira have further damaged the economy and invariably eroded the fortunes of some of our rich and well-heeled, including Dr. Mike Adenuga, Jnr. (now number 395 on the list with $4.1 billion net-worth ) and Mrs. Folorunsho Alakija (number 947, with $2 billion).
Last week, the naira exchanged for N206 against the dollar, and the market capitalisation at Nigerian Stock Exchange (which was about N14.163 trillion in the middle of last year) danced around N9.321 trillion.
Alhaji Dangote, whose companies are listed on the stock exchange, battles on two fronts – erosion of confidence in Nigeria leading to exit of major investors and fall in share prices as well as the exchange rate which totters on the brink of collapse.
The news of Dangote’s climb to the 23rd spot on Forbes list was greeted by jubilation across the land on Wednesday, November 5. For the first time, a black person broke the barrier of the first 25 richest persons in the world. With $25 billion, it was sweet victory for all.The adorable man was serenaded and applauded!
But our bliss was dampened 24 hours later… Dangote lost $3.7 billion (N762.2 billion) in one day, sliding from number 23 position on Forbes richest list to 37 by the afternoon of Friday, November 7, 2014, with $21.3 billion (N4.387 trillion) net-worth.
The slide could be attributed to the loss of Dangote Cement on the stock market (from N208.85 to N198.45 per share), and the battering of the naira which exchanged for N170.5 to the dollar then.
DANGOTE Cement shed about N20 per share in two days. On Wednesday, November 5, 2014, it stood at N208.85 per share, dropping to N198.45 by Thursday, November 6, and N188.53 on Friday, November 7.
On Monday, November 10, 2014, Dangote Cement further lost N9.42, moving from N188.53 to N179.11 per share.
At the end of the week (by Friday, November 7), he had lost $5 billion (N1.03 trillion) of the fortunes!
He moved from the 43rd spot to 23rd, 37th and finally rested on 38th in two days that November.
His net worth of $20 billion (N4.12 trillion) climbed to $25 billion (N5.15 trillion), dropped to $21.3 billion (N4.387 trillion), and settled at $19.5 billion (N4.017 trillion) that weekend.
Some good news came on Monday, November 10, 2014, when he moved three steps from 38th position to 35th on Forbes list, with $21.6 billion (N4.449 trillion) net-worth. Many sighed in relief that the likeable billionaire was on his way up again.
But series of bad news followed, and week after week, the net-worth of Dangote fell. By Monday, February 16, 2015, it stood at $14.9 billion – and the share price of Dangote Cement stood at N140!
The man who began business as a trader in major commodities and moved into manufacturing, stepped onto the Forbes rich list in 2008 with $3.3 billion. By 2009, his net-worth dropped to $2.5 billion. In 2010, it stood at $2.1 billion; 2011 $13.8 billion; 2012 $11.2 billion; 2013 it dangled between $16.1 billion to $20.8 billion. And in 2014, from $25 billion to $19.5 billion. In 2015, the net worth stood at $14.9 billion on Monday, February 16.
The equities market rose to N14.163 trillion in the middle of 2014. Dropped to N13.607 trillion by September 30, 2014. By Friday, October 24, the market capitalisation nestled around N12.906 trillion. On Friday, October 31, it stood at N12.437 trillion, and N11.004 trillion on Friday, November 7, 2014. On Monday, November 10, it settled at N11.007 trillion.
And on Monday, February 16,2015, lurked around N9.176 trillion. In six months, the market lost over N5 trillion – damaging the net-worth of millions of Nigerians.