Dangote Group subsidiaries emerged as top recipients in the latest Retail Dutch Auction held by the Central Bank of Nigeria (CBN), purchasing at least $105.33 million in successful foreign exchange (FX) bids.
Approximately 13% of the $876.26 million that the CBN disbursed to eligible banks is represented by this allocation.
In the most recent CBN Retail Dutch Auction, Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank were the main banks that obtained the greatest Foreign Exchange for Dangote’s companies. In addition, four of these banks rank among the top ten banks that received the greatest foreign exchange at the CBN’s auction.
These banks were crucial in enabling the importation of equipment, replacement parts, and raw materials that were required to keep Dangote’s varied industrial empire running smoothly.
Most of the FX went to Dangote Sugar Refinery
Dangote Sugar Refinery led among the companies owned by Aliko Dangote, the richest man in Africa, with FX bids of $87.42 million. Large allotments were given to Dangote Sugar Refinery to import raw sugar made from Brazilian cane. For instance, a bid of $10.96 million was placed for importing 16,000 metric tonnes of raw sugar in one transaction.
The winning bidder, Dangote Cement PLC, a major player in the African cement market, submitted a $9.03 million offer. A number of lesser sums were set aside, mostly by Dangote Cement PLC, for the purchase of replacement parts for the machinery used in cement plants.
The CBN auction yielded $5.33 million to the Dangote Oil & Gas Company Limited. For the acquisition of gasoil and low-pour fuel oil (LPFO), which are necessary for the generation of energy and industrial processes, Dangote Oil & Gas Company Limited acquired a significant amount of foreign exchange. In this company, the highest single bid was $2.5 million for 15,000 metric tonnes of gasoil.
Dangote Agro Sacks Limited was given $941,600.96, and Dangote Industries Limited was given $2.5 million. Dangote Industries Limited was able to secure $2.5 million for the importation of a pair of gas turbines.
Dangote Sinotruk West Africa Limited and Dangote Coal Mines Ltd received smaller amounts, $104,568.68 and $7,161.50, respectively.
Dangote’s companies used a sizable amount of the foreign cash allotted to them to acquire spare components for various industrial and manufacturing operations. For example, Dangote Agro Sacks Limited’s foreign exchange offer was for replacement parts for manufacturing and textile machinery.
What to note
In July 2024, companies belonging to the Dangote Group had a double-digit decrease in share prices, resulting in a loss of around N1.21 trillion in market capitalization, as reported by The News Chronicles previously.
The three Dangote Group companies listed on the NGX are Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries. In July, the share prices of these companies had declines of 10%, 13.6%, and 19.8%, respectively.
Aliko Dangote, the group president, saw a decrease in net worth due to these companies’ monthly market losses. Dangote, who owns an 86% share in Dangote Cement Plc, a 72.2% share in Dangote Sugar Refinery, and a 62.19% share in NASCON, is Africa’s richest man both directly and indirectly through Dangote Industries Limited. As a result, Dangote’s personal wealth took a fall of N1.02 trillion (or roughly $680 million) from the losses reported.
As of July 1, 2024, his net worth was estimated by the Bloomberg Billionaires’ Index to be approximately $14.8 billion. By month’s end, though, it had dropped to $13.6 billion.
Dangote’s publicly traded enterprises comprise the majority of his holdings. Nonetheless, the Dangote fertilizer plant was one of his private holdings, valued at $5.1 billion.
The Dangote Refinery, the company’s flagship asset, is not currently valued due to a number of issues that have dogged the facility over the past month.
President Bola Tinubu’s plan to sell crude oil to Dangote Refinery and other prospective refineries in Naira was recently accepted by the Federal Executive Council. The federal government’s historic announcement might
