Dangote Group’s subsidiaries have emerged as major recipients in the latest Retail Dutch Auction conducted by the Central Bank of Nigeria (CBN), purchasing at least $105.33 million in successful foreign exchange (FX) bids.
This allocation represents about 13% of the $876.26 million that the CBN distributed among qualified banks.
Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank were the primary banks that secured the most FX for Dangote’s firms in the latest CBN Retail Dutch Auction. Four of these banks are also on the list of the top 10 banks that got the most FX from the CBN’s auction.
These banks played vital roles in facilitating the importation of essential raw materials, spare parts, and equipment, crucial for maintaining the operational efficiency of Dangote’s diverse industrial empire.
A significant portion of the foreign exchange allocated to Dangote’s firms was for importing spare parts for various manufacturing and industrial processes. For instance, Dangote Agro Sacks Limited’s FX bid was for spare parts needed for textile machinery and manufacturing equipment.
Nairametrics earlier reported that companies under the Dangote Group lost about N1.21 trillion of their market capitalization in July 2024, as they all experienced a double-digit share price decline during the month.
Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries are the three subsidiaries of Dangote Group listed on the NGX. These companies’ share prices declined by 10%, 13.6%, and 19.8% respectively in July.
The market losses by these companies during the month had an impact on the net worth of the group’s President, Aliko Dangote. Dangote who is Africa’s richest man directly and indirectly through Dangote Industries Limited owns an 86% stake in Dangote Cement Plc, a 72.2% stake in Dangote Sugar Refinery, and a 62.19% stake in NASCON. Hence the losses posted reflected a N1.02 trillion (~$680 million) hit to Dangote’s personal fortune.
According to the Bloomberg Billionaires’ Index, his net worth as of July 1, 2024, was about $14.8 billion. However, at the end of the month, it declined to $13.6 billion.
The bulk of Dangote’s assets are his publicly quoted companies. However, his private assets such as the Dangote fertilizer plant were valued at $5.1 billion. The flagship of Dangote’s assets, the Dangote Refinery, is not yet valued amidst a myriad of controversies that have plagued the plant over the past month.
The Federal Executive Council recently approved President Bola Tinubu’s proposal to sell crude oil to Dangote Refinery and other upcoming refineries in Naira. The landmark announcement by the federal government may help stabilize fuel pump prices and the dollar-naira exchange rate.
A member of the All Progressives Congress (APC), Joe Igbokwe, has said Seyi Tinubu, son…
IPOB PRESS RELEASE 22/11/2024 SIMON EKPA IS NOT AN IPOB MEMBER AND MUST NOT BE…
NEWSPAPER HEADLINES FOR FRIDAY 22ND NOVEMBER 2024. *PUNCH* Gombe begins N28bn Assembly, high court complexes…
Former bread seller turned model, Olajumoke Orisaguna, popularly known as Olajumoke Onibread, has opened up…
Senate Majority Leader, Opeyemi Bamidele has denies reports that he was involved in a fight…
– says lawmakers united to meet yearnings of Lagosians – accuses detractors of peddling news…