Aliko Dangote, Africa's Richest Man, Loses U.S.$7.8 Bn As Naira, Stocks Plunge

Date: 24-02-2015 2:14 pm (7 years ago) | Author: franel
- at 24-02-2015 02:14 PM (7 years ago)
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«§» 24 February 2015



A few weeks ago, Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, announced a nearly 10 per cent devaluation of the naira, Nigeria's currency, after admitting that a plunge in world oil prices and dwindling dollar reserves were making it difficult to defend the value of the currency. The naira is now trading at N187 to $1 officially, compared to N165 in November. In the parallel market, the naira traded at N218 for a dollar Monday. In dollar terms, the devaluation has knocked more than $40 billion off the value of Nigeria's economy.

Aliko Dangote, Africa's richest man, is the biggest loser among Nigeria's richest people as the Naira's slump, coupled with falling stock prices, have erased more than $7.8 billion of his fortune since February, when FORBES locked in the values for its annual ranking of the world's billionaires. Dangote was worth $25 billion at the time; but at the close of market last Tuesday, his networth had dropped to $17.2 billion. More than half of the drop in his fortune has happened since early November. As of November 7, Dangote was worth $21.6 billion, $4.4 billion more than now.

This is because the last few weeks have been a bit of a disaster for many companies listed on the Nigerian Stock Exchange (NSE). Several blue-chip stocks such as Dangote Cement, Zenith Bank, Transcorp and United Bank for Africa among several others have hit one-year-lows as a result of the fall in oil prices, a general uncertainty regarding the 2015 general election, Central Bank regulatory headwinds, and weak earnings from large cap companies. These have all contributed towards putting naira-denominated assets including equities at risk.

Speaking on the fall in the networth of stocks, a financial analyst, Ugodre Obi-Chukwu, noted that, "This is whipping up negative market sentiments as foreign and institutional investors such as pension funds who hold equity stakes in companies (due to their large cap and liquidity status) have mostly fled their positions". Obi-Chukwu is also the publisher of Nairametrics <http://nairametrics.com/>, a website that provides analysis and opinion about Nigerian stocks, investing, personal finance and the economy.

Dangote Cement, Africa's largest manufacturer of cement, has shed close to 40 per cent of its market value between the beginning of November and now. The company's stock, which was trading at N215 ($1.15) at the beginning of November, is now valued at N165 (88 cents) as at yesterday. At the beginning of November, Dangote's stake in the cement manufacturer was valued at more than $18 billion. It is now valued at $13.2 billion.

Dangote has also lost more than $230 million in paper value within the same period on his stakes in publicly-traded Dangote Sugar, Dangote Flour, and National Salt Company of Nigeria.

Between November (when FORBES published the list of Africa's 50 richest people and today) Dangote has lost more than $4 billion in his net worth.

After Dangote, the second biggest loser among Nigeria's ultra-rich is Tony Elumelu, the Chairman of Heirs Holdings, an investment company. Heirs Holdings, which is wholly-owned by Elumelu, is the controlling shareholder in Transcorp, a publicly-listed conglomerate with interests in power production, hotels and agriculture. Transcorp's current market capitalisation is now $700 million, down from $1.4 billion at the beginning of November. Heirs Holdings has lost an estimated $345 million in paper value on Transcorp, and its stake in the company as at yesterday is now worth roughly $400 million, down from $700 million.

Elumelu's investments in other listed companies like UBA, Africa Prudential PLC and UBA Capital have shed a little over $27 million in value.

Other big losers include Nigerian multi-millionaire banker Jim Ovia, a co-founder of Zenith Bank. The value of his stake in the financial services provider is $240 million as of late yesterday, down from more than $350 million last month. He owns a 9 per cent stake in the bank.


Posted: at 24-02-2015 02:14 PM (7 years ago) | Hero
- echeeche at 24-02-2015 05:32 PM (7 years ago)
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Pls tell oga Jona
Posted: at 24-02-2015 05:32 PM (7 years ago) | Hero
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- beneno at 24-02-2015 05:55 PM (7 years ago)
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this is Election time,all the politicians that kept their money in his account have withdrawed them for election campane to return it later  Roll Eyes Roll Eyes Roll Eyes Roll Eyes
Posted: at 24-02-2015 05:55 PM (7 years ago) | Addicted Hero
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- femiharrys at 24-02-2015 06:55 PM (7 years ago)
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What the Heck this person talking bout here...According to FORBES { when FORBES locked in the values for its annual ranking of the world's billionaires. Dangote was worth $25 billion at the time}

As at that tym dollars was around 155-160 ....And now dollars is btw 200-210 exchange rate ...

Ok come think of it now .......He has $25 Billion  2014 at the rate of 150 Naira exchange rate .... 150 x 25,000,000,000.=3,750,000,000,000

and now  in 2015 dollars became $200 exchange rate to Nigeria money ..                           .......200x25,000,000,000. =5,000,000,000,000
                                                                                                                                                               Minus (-) 3,750,000,000,000
                                                                                                                                                                           ---------------------------------
                                                                                                                                                                             1,250,000,000,000.00

meaning he gained 1,250,000,000,000.00 {One Trillion Two Hundred And fifty Billion Naira }   

PLS BE WISE-UP.....         













                                                                                                                                                                           
Posted: at 24-02-2015 06:55 PM (7 years ago) | Newbie
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- joromy at 24-02-2015 07:58 PM (7 years ago)
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PRICE OF OIL AND GAS FALL ALIKO DANGOTE FALL, BECAUSE OF THEIR INNER CORRUPTION THAT INVOLVED IN OIL BOGLARRY IS WHAT IS AFFECTING MOST OF THE BUSINESS MEN AND WOMEN IN NIGERIA PEOPLE LIKE ALIKO DANGOTE THAT USE CEMENT INDUSTRY AND FLOWER BUSINESS TO COVER UP THEIR CORRUPTION IN NIGERIA.
Posted: at 24-02-2015 07:58 PM (7 years ago) | Gistmaniac
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- osarobo62 at 24-02-2015 08:19 PM (7 years ago)
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no be only him get all those money and companies oh.......he na front for many sitting politicians.
Posted: at 24-02-2015 08:19 PM (7 years ago) | Hero
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- SweetDaddy1 at 25-02-2015 01:35 AM (7 years ago)
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If he lose $20BN, he's still a rich man
Posted: at 25-02-2015 01:35 AM (7 years ago) | Gistmaniac
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- EmekaBlue at 25-02-2015 03:13 AM (7 years ago)
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u go regain am plus more
Posted: at 25-02-2015 03:13 AM (7 years ago) | Gistmaniac
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- EMALLY at 25-02-2015 03:16 AM (7 years ago)
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your money will get back to you in 100 folds...............amen
Posted: at 25-02-2015 03:16 AM (7 years ago) | Upcoming
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- Wysetots at 25-02-2015 04:48 AM (7 years ago)
(m)
All because of elections
Posted: at 25-02-2015 04:48 AM (7 years ago) | Hero
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- Andybest1 at 25-02-2015 07:32 AM (7 years ago)
(m)
Pretty bad
Posted: at 25-02-2015 07:32 AM (7 years ago) | Upcoming
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- Nicksam at 25-02-2015 08:19 AM (7 years ago)
(m)
NA WA OOO
Posted: at 25-02-2015 08:19 AM (7 years ago) | Hero
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- Larry28 at 25-02-2015 10:51 AM (7 years ago)
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Everyday no be chrismax..
Posted: at 25-02-2015 10:51 AM (7 years ago) | Hero
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- Ritabrenice at 25-02-2015 11:02 AM (7 years ago)
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God
Posted: at 25-02-2015 11:02 AM (7 years ago) | Gistmaniac
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- proly at 25-02-2015 01:01 PM (7 years ago)
(f)
Hmmmmmmmmmm
Posted: at 25-02-2015 01:01 PM (7 years ago) | Hero
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- diezo at 25-02-2015 03:05 PM (7 years ago)
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Where him dey get him money from before na dem b d oil thiefs wey hold our oil come dey use cement, rice, paint etc take dey block our eyes make we no know but our eyes don open he just start na wen oil go comot from market kpatakpata na we go see their yansh yeye fowl mtcheeeeeeeeeeew
Posted: at 25-02-2015 03:05 PM (7 years ago) | Gistmaniac
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- discollins at 25-02-2015 03:40 PM (7 years ago)
(m)
He shall recover soonest...
Posted: at 25-02-2015 03:40 PM (7 years ago) | Upcoming
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- PoliticxGuru at 15-08-2015 03:29 PM (7 years ago)
(m)
how dis one take put food for my table
Posted: at 15-08-2015 03:29 PM (7 years ago) | Hero
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- forexafrica at 28-12-2017 02:40 PM (4 years ago)
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Many forex traders made huge profit as a result of the fluctuations. All thanks to their Instaforex deposits.
Posted: at 28-12-2017 02:40 PM (4 years ago) | Newbie
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