Aliko Dangote, the richest man in Africa and president of Dangote Group, has seen a significant increase in his net worth over the last four years, rising by almost $5.1 billion.
THE MATRIX’s investigation, which used information from the Forbes Real-Time Billionaire Index, demonstrated this notable increase.
Dangote’s wealth increased by 61.45% from 2020 to 2024. His worth increased to $13.5 billion on May 9, 2024, from $8.3 billion in 2020.
Examining the economy more closely, we can see that there have been variations in the naira-to-dollar exchange rate throughout this period.
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In 2020, the exchange rate averaged around N380.2/$, with fluctuations hitting an all-time low of N361.2/$ as of January 16, 2020. These currency dynamics have undoubtedly played a role in shaping the financial landscape for Dangote and other investors during this period.
A foray into the progression of Dangote’s net worth over the past four years reveals a mix of growth and decline. For instance, in 2020, he began the year with a net worth of $8.3 billion, and by 2021, it had notably increased to $11.5 billion, indicating a 38.5% increase. Throughout this period, the naira fluctuated but remained relatively stable around N381/$.
In 2022, Aliko Dangote’s net worth soared to $14 billion, marking a substantial 21.7% increase compared to the previous year. By 2023, his wealth had climbed, reaching an impressive $14.2 billion. However, this upward trajectory faced a significant challenge as economic dynamics shifted.
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In 2022, the Nigerian Naira experienced a significant depreciation, crossing over to N448/$. By 2023, the free float of the Naira led to a staggering 68% loss in its value, a profound downturn attributed to the implementation of the foreign exchange unification policy, as reported by Nairalytics.
By January 2024, the official foreign exchange rate has surged to N1455.59/$, marking a substantial depreciation from the previous rate of N464.67/$ in May 2023. This rapid devaluation took its toll on Dangote’s wealth, causing it to drop to $13.5 billion, a notable 5.6% decline. A significant portion of Dangote’s wealth is denominated in dollars.
The majority of Dangote’s net worth is tied to his conglomerate, particularly his 85% ownership of publicly-traded Dangote Cement. With an annual production capacity of 48.6 million metric tons and operations spanning 10 African countries, Dangote Cement stands as a cornerstone of his wealth.
