Nigeria's Economy Crashes Aliko Dangote's Net worth As South African Billionaire, Johann Rupert Emerges Africa's Richest Man

By: Olufemi Orunsola.

In a development that bears further testament to President Bola Tinubu's reference to Nigeria's economy as akin to a patient on life saver in the Intensive care unit during one of his national broadcast, the dwindling economic fortune of Nigeria have taken its tolls on Aliko Dangote whose has now lost his place as Africa's richest man to his South African counterpart, Johan Rupert, chairman of the luxury goods conglomerate Richemont, who has reclaimed his position as Africa’s richest man.

OPEN TELEVISION NAIJA OTN News gathered from credible financial journalism sources that Rupert’s rise to the topmost position in Africa comes after Nigerian industrialist, Aliko Dangote, owner of the Dangote Group, experienced a significant decline in net worth, losing over $1 billion.

According to the latest figures from the Bloomberg Billionaires Index, Rupert’s net worth has surged to $14.3 billion, overtaking Dangote, whose net worth has dropped to $13.4 billion. This year, Rupert has seen his wealth increase by $1.87 billion, while Dangote’s fortune has shrunk by approximately $1.69 billion.

According to experts, the primary factor behind Dangote’s financial setback is Nigeria’s challenging macroeconomic environment, where his conglomerate operates extensively.

OTN News recalls that the Dangote Group has faced multiple hurdles, including production delays at its refinery and significant depreciation of the Nigerian naira.

OTN News further gathered that the weakening of the naira has had a substantial impact on Dangote’s wealth, which is heavily tied to naira-denominated assets.

A couple of weeks ago, Dangote was ranked as the 145th richest person globally by Bloomberg, but he has since fallen to the 160th position. Last year, Rupert briefly held the title of Africa’s richest man, as Forbes ranked him above Dangote following a major devaluation of the naira. The currency’s instability has continued to affect Dangote’s fortune, making it one of Africa’s worst-performing currencies this year.

According to financial experts, the fortunes of Nigerian billionaire Aliko Dangote has dropped significantly since President Bola Tinubu"s announcement of fuel subsidy removal upon his assumption of office, threafter implementing policies meant to currency controls to attract foreign investment, the naira has depreciated by about 70 per cent.

 It is therefore reported that this steep decline has significantly eroded Aliko Dangote’s net asset value.

In 2023, Dangote Industries Limited reported a substantial foreign exchange loss of $1.07 billion. The company is also grappling with supply chain issues at its Nigerian refinery and a recent downgrade by Fitch Ratings.

In the 2024 rankings, Johann Rupert & Family’s wealth went from $10.7b down to $10.3b to emerge Africa’s richest man with the decrease of the wealth of long-time African richest Aliko Dangote which went from $13.5b to $9.5b.

In the list, there were significant declines in the wealth of the billionaires. The wealth of Nigeria’s Mike Adenuga, moved him to the tenth position, while Patrice Motsepe who was in the top ten in 2023 didn’t make the top ten richest men in 2024. Additionally, no woman made the top ten richest list at the start of the year.

OTN News gathered that the declines in the wealth of these individuals are pointers to the economic challenges across African countries. The devaluation of the Naira and other economic issues can be attributed to the decrease of Dangote’s wealth.

However, despite these setbacks, the Dangote Group remains optimistic, aiming to generate roughly $30 billion in revenue by 2025 and expand its presence in the foreign exchange market.

Meanwhile, OTN NEWS gathered that Aliko Dangote has outlined strategic plans to reduce the group’s dependence on the Central Bank of Nigeria for currency supply and diversify its revenue sources. He also intends to reduce his stake in the cement business from 75 per cent to 15 per cent and balance the group’s earnings with a 50 per cent contribution from foreign markets.

By 2025, the Dangote Group aims for 90 per cent of its revenue to come from foreign exchange earnings, highlighting its commitment to international expansion amid Nigeria’s ongoing economic challenges.

Tags: South African billionaire, Johan Rupert, Richest man in Africa, Nigeria's billionaire, Aliko Dangote Africa's richest man,