The Dangote Group’s companies saw double-digit share price declines in July 2024, which resulted in a loss of around N1.21 trillion in market capitalization.
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 firms had declines of 10%, 13.6%, and 19.8%, respectively. This resulted in a loss of N1.21 trillion in market capitalization during that time.
The market capitalization of the NGX fell by N1.09 trillion in July, from N56.602 trillion at the beginning of the month to N55.514 trillion, representing a 2.28% fall.
Dangote Cement lost N1.12 trillion in market capitalization throughout that time, ending July with a market cap of N10.07 trillion, down from N11.19 trillion at the beginning of the month. The market capitalization of Dangote Sugar Refinery Plc decreased by N71.06 billion, from N522.32 billion to N451.26 billion.
The market capitalization of salt producer NASCON Allied Industries decreased by N19.7 billion over the course of the month, from N93.2 billion to N79.7 billion.
Effect on Aliko Dangote
Aliko Dangote, the group president, saw a decrease in wealth as a result of 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.
Dangote’s confrontation with the Nigerian government
The battle between Aliko Dangote and Nigerian authorities had a greater impact on the July rapid decrease in Dangote’s stock market assets than any other factor, even if it was linked to the poor financial performance of Dangote Sugar and NASCON during the first half of 2024.
Late in June, Dangote Industries’ Vice President of Oil and Gas bemoaned the difficulty in obtaining crude oil from International Oil Companies (IOCs) and charged that these companies were attempting to damage the refinery. A charge that the CEO of the Nigerian Upstream Regulatory Commission (NUPRC) denied in a television appearance.
Dangote escalated his confrontation with Nigerian petroleum regulators on July 14, pointing out that NNPC’s share had decreased from 20% to 7.2%. The Nigerian public was receiving contaminated diesel from Dangote Refinery, according to the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), who made this observation in response.
