The naira has lost over 43% of its value this year alone, making it one of the worst-performing currencies in Africa. Since President Bola Tinubu took office and partially lifted fuel subsidies while relaxing currency controls to attract foreign investment, the naira has depreciated by about 70%. This has significantly affected Dangote’s net asset value, given his exposure to the local currency.
Dangote Industries Limited (DIL) reported a substantial foreign exchange loss of $1.07 billion in 2023. In addition to existing supply chain issues at its Nigerian refinery, the company has also suffered from a recent downgrade by Fitch Ratings. Despite these challenges, the Dangote Group has ambitious plans to generate roughly $30 billion in revenue by 2025, focusing on expanding its influence in the foreign exchange market.
Aliko Dangote outlined a strategic pivot for the group, including reducing its reliance on the Central Bank of Nigeria for currency supply and diversifying its revenue streams.
He has also revealed plans to decrease his stake in the cement business from 75% to 15% and to balance the group’s earnings with a 50% contribution from foreign sources.
By 2025, the Dangote Group aims for 90% of its revenue to come from foreign exchange earnings, underscoring its commitment to international expansion amidst Nigeria’s ongoing economic volatility.