Nigerian business magnate, Aliko Dangote
Nigerian business magnate, Aliko Dangote, has experienced a significant financial upswing, witnessing an increase of more than $100 million in the first week of 2024.
This surge, in a news report by billionaires.africa, has propelled his net worth well beyond the $15-billion mark, marking a notable recovery from a $3.6-billion dip in 2023.
Attributed to the strong performance of his diversified investment portfolio on the Nigerian Exchange (NGX), Dangote's financial resurgence is driven by a bullish market sentiment, pushing the local bourse's all-share index closer to the 80,000 points milestone.
The report cited the Bloomberg Billionaires Index, which states that Dangote's wealth has risen from $15.1 billion at the beginning of 2024 to $15.2 billion.
The $106-million increment in his net worth this year is directly linked to the robust performance of his investments on the NGX.
The core of Dangote's financial rebound, according to the report, lies in his strategic stakes in key Nigerian companies. This includes a 72.7 % stake in Dangote Sugar Refinery, a 66.5% stake in leading salt processing company, NASCON Allied Plc, and an 86% ownership in Dangote Cement, his flagship company.
Presently, his stakes in Dangote Sugar Refinery and NASCON Allied Plc, are valued at $624 million and $108 million, respectively.
Meanwhile, his stake in Dangote Cement, Africa's largest cement manufacturing company, is estimated at $5.59 billion.
While Bloomberg identifies Dangote as Africa's wealthiest individual with a net worth of $15.2 billion, Forbes positions him as the second richest in Africa at $9.8 billion.
The key point of contention revolves around the valuation of Dangote's fertiliser plant, Dangote Fertilizer, boasting a capacity to produce 2.8 million tonnes of urea annually.
Bloomberg incorporates the $5.15-billion valuation of Dangote Fertilizer in its calculations, utilising a discounted cash flow analysis by KPMG, a valuation corroborated by external analysts.
In contrast, Forbes omits this figure due to limited access to financial information about the fertiliser plant.
This discrepancy underscores the complexities of assessing the wealth of a magnate like Dangote, particularly in sectors with limited financial disclosure.
NW/MA
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