Billionaire Aliko Dangote, founder of Dangote Group is N103 billion poorer this is as his earning declined by about 14%.
ENigeria Newspaper reports that Dangote’s fortune has been on a downward trajectory since President Bola Ahmed Tinubu assumed office on May 29, 2023, signaling the introduction of a new economic era; birthing policies which many believe were not well thought out.
You would recall that this newspaper reported weeks back in exclusive news published on our online platform that Dangote lost a whopping $4.12 billion in a day, a development triggered by the sudden devaluation of the naira or floating of the naira by the new leadership of the Central Bank of Nigeria in the hands of Folashade Adebisi Shonubi.
The continuous losses incurred by Aliko Dangote in his various businesses saw his wealth plummeting significantly below $10 billion – for the first time since the Covid-19 pandemic in 2020.
Insiders also alleged that asides from the current instability in the forex market which saw most Nigerian billionaires losing a fortune, the likes of Aliko Dangote, Abdul Samad Rabiu, and a few others who benefit from alleged insider dealings with the Central Bank have been suffering lately since the axing of Godwin Emefiele from the apex bank.
On Friday, ENigeria Newspaper exposed a dirty dollar racketeering insider forex deals of Abdul Samad Rabiu, founder of BUA Group and the CBN with the aid of the now embattled Godwin Emefiele.
This Newspaper reports that at the expense of impoverished Nigerians, the ousted CBN Governor opened a forex credit line for Rabiu which enables him to borrow at the official rate of N199 2016, resell at a black-market rate of N495, and rake in billions of naira in turnover effortlessly. READ IT HERE
ENigeria Newspaper investigation which is the first of three-part chronicles Nigerian billionaires (Dangote inclusive), who enjoyed Emefiele’s dollar largesse by cheating the entire Nigerian financial system.
Insiders who spoke anonymously to us revealed that the new administration armed with detailed reports of all the infractions allegedly committed by Emefiele and cronies like Aliko Dangote and Abdul Samad decided to put in place some mechanisms by way of new economic policies to clip their wings.
Dangote Cement incurs N101.8 billion in Forex Losses
ENigeria Newspaper reports that Dangote Cement incurs N103.8 billion in forex losses with its earning declining by 14% YoY
Dangote Cement Plc reported its 2023 second-quarter results showing pre-tax profits fell 14% to N93 billion.
This took half-year pre-tax profits to N239.9 billion versus N264.8 billion same period last year.
Dangote Cement also reported an exchange rate loss of N103.8 billion in the second quarter of the year due to the unification of the naira.
Key highlights 2023 Q2
Revenue N544.1 billion +37.8%
Operating profit N93 billion +64.9%
Finance cost N130.1 billion +385%
Exchange rate loss of N103.8 billion
Short-term loans N683.4 billion vs N338 billion (2023 Q1)
Long-term loans N370.7 billion vs N342 billion (2023 Q1)
Working capital -N233.7 billion vs N126.2 billion (2023 Q1)
Gross margins 59.7% vs 57.4% YoY
Operating profit margin 41% vs 34.3%
Earnings per share N3.95 vs N3.92
Net cash flow from operating activities N355.2 billion
Production volume 6,909 vs 6749
Insights: Dangote Cement reported strong operating profit earnings in the second quarter of the year represented by a 65% increase in operating profits.
However, just like most corporates, they also incurred N103.8 billion in foreign exchange losses.
The forex component of Dangote Cement’s loans is N217.4 billion made up of letters of credit.
The loans are at a Secured Overnight Financing Rate (SOFR) plus 10%
