For a over a decade, the Nigerian business tycoon and billionaire Aliko Dangote has been reigning as the African richest man. But the title has been taken away and Dangote has been overtaken by South African billionaire Johann Rupert. The new African richest man Rupert controls Richemont, one of the world’s largest luxury goods firms, which owns brands like Cartier and Montblanc. Rupert net worth is $14.3bn compared to Dangote $13.4bn as reported by Bloomberg News Network.
The freefall ” in the value of the naira has significantly affected Mr Dangote, whose wealth is largely tied to assets denominated in the local currency.” The nosedive of the value of the weaken naira was brought by the devalued of the currency initiated by the new Nigerian ruler Ahmed Tinubu.
“The downturn in Mr Dangote’s wealth underscores Nigeria’s challenging economic environment, where his conglomerate primarily operates. Since President Bola Tinubu assumed office last year, he has introduced several economic reforms in Africa’s most populous nation, including the removal of fuel subsidies, which have contributed to high inflation, currently over 30%. Mr Tinubu said the reforms were necessary to cut government spending and stimulate long-term growth.”
Nigerian economy is in free fall and the rising inflation is making the condition unfavorable for business transaction. The consumers are holding devalued naira with depreciated purchasing power. And make things worst, the price of energy is getting beyond reach of average consumer in Nigeria due to the removal of fuel subsidy by Tinubu administration. All these factors contributed to Dangote wealth fallen by $1.7bn.
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