Forbes reports that Nigerian tycoon Aliko Dangote’s net worth has fallen below the $10 billion threshold for the first time since the COVID-19 epidemic in 2020.
As of the close of business on Friday, Dangote’s net worth, according to Forbes, stands at $9.9 billion. The last time Forbes pegged the Nigerian Cement’s tycoon wealth below $10 billion was in April 2020, at the height of the global COVID-19 stock market crash.
The Bloomberg Billionaires Index still values Dangote at $15.7 billion and insists the Nigerian billionaire is still Africa’s richest man.
Forbes and Bloomberg, the world’s leading authorities on the wealth of the world’s wealthiest people, have different approaches to valuing billionaires.
In the case of Dangote, both outlets have varying opinions on the actual value of one of Dangote’s key assets – the 650,000-barrel-per-day Dangote Oil Refinery in Lagos, which former President Muhammadu Buhari commissioned in May.
While the exact amount it has cost to build the complex to its current level is unknown, various figures ranging from $18 billion to $19 billion have been peddled around Nigerian and international media.
Dangote took on debt to fund the project and is still heavily indebted to the tune of several billion dollars.
As a result, Forbes does not ascribe any value to this asset in valuing him. On the other hand, in valuing Dangote, Bloomberg accounts for debt on the Dangote refinery by discounting 50 percent of the refinery’s value and ascribing the other 50 percent to his net worth.
Dangote held sway as Africa’s richest man for 12 years.
However, the Central Bank of Nigeria’s decision to allow market forces to dictate the value of the naira has resulted in significant losses for the nation’s billionaires.
Last week, the naira reached an all-time low of 750 to the dollar, plummeting from 477 naira to the dollar.
The value of the Naira-denominated stock prices of Dangote’s various companies listed on the Nigerian Exchange – from Sugar to salt and Cement, took a severe beating.
South African billionaire Johann Rupert, who heads Swiss luxury goods company Richemont, is now Africa’s richest man, at least according to Forbes.