Subsidiaries of the Dangote Group have secured a substantial $105.33 million in foreign exchange (FX) from the latest Retail Dutch Auction conducted by the Central Bank of Nigeria (CBN). This allocation represents approximately 13% of the $876.26 million disbursed by the CBN among qualified banks.
The primary banks facilitating these transactions for Dangote’s firms were Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank. These banks played crucial roles in securing FX for the importation of essential raw materials, spare parts, and equipment, vital for maintaining the operational efficiency of Dangote’s diverse industrial operations.
Leading the FX bids was Dangote Sugar Refinery, which secured $87.42 million, primarily for the importation of Brazilian cane raw sugar. Notably, one transaction involved a bid of $10.96 million for the import of 16,000 metric tons of raw sugar.
Dangote Cement PLC, a major player in Africa’s cement industry, successfully bid $9.03 million, focusing on the procurement of spare parts for cement plant machinery. Meanwhile, Dangote Oil & Gas Company Limited obtained $5.33 million, earmarked for the purchase of gasoil and low-pour fuel oil (LPFO), with the largest single bid amounting to $2.5 million for 15,000 metric tons of gasoil.
Dangote Industries Limited received a $2.5 million foreign exchange (FX) allocation, primarily for importing gas turbines, while Dangote Agro Sacks Limited was allocated $941,600.96 for spare parts needed in textile machinery. Smaller allocations were also made to Dangote Sinotruk West Africa Limited and Dangote Coal Mines Ltd, amounting to $7,161.50 and $104,568.68 respectively.
A significant portion of the FX allocations for Dangote’s companies was directed towards importing spare parts for various manufacturing and industrial processes, supporting the conglomerate’s extensive operations.
In July, shares of Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries—three of Dangote Group’s subsidiaries listed on the Nigerian Exchange (NGX)—suffered declines of 10%, 13.6%, and 19.8% respectively. These losses contributed to a substantial N1.02 trillion (~$680 million) reduction in the net worth of Aliko Dangote, Africa’s richest man, whose wealth is closely tied to these publicly listed companies. Dangote holds an 86% stake in Dangote Cement, a 72.2% stake in Dangote Sugar Refinery, and a 62.19% stake in NASCON Allied Industries through Dangote Industries Limited.
According to the Bloomberg Billionaires’ Index, Dangote’s net worth dropped from $14.8 billion on July 1, 2024, to $13.6 billion by the end of the month. While the bulk of his assets are tied to his publicly listed companies, his private holdings, including the Dangote fertilizer plant, are valued at $5.1 billion. The flagship Dangote Refinery remains unvalued amid ongoing controversies.
In a move that may influence both fuel prices and the dollar-naira exchange rate, the Federal Executive Council recently approved President Bola Tinubu’s proposal to allow the sale of crude oil to Dangote Refinery and other emerging refineries in Naira. This policy shift could provide some stability in the market as the refinery continues to develop.
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