Dangote, Rabiu, Adenuga Witness Surge in Combined Wealth Despite Economic Challenges in 2024
Forbes Real-Time Billionaires list reveals a remarkable surge in the collective wealth of Nigeria's prominent billionaires, Aliko Dangote, Abdulsamad Rabiu, and Mike Adenuga, amid economic crises and political uncertainty following the February presidential election.
According to Forbes data, the combined wealth of Dangote, Rabiu, and Adenuga nearly doubled within three weeks of 2024, reaching a new high of $33.6 billion from $18.1 billion on December 29.
A detailed breakdown indicates that Adenuga's wealth experienced a $4 billion increase to $7 billion, Rabiu's wealth rose by $2.4 billion to $8.1 billion, and Dangote saw a substantial surge of $9.1 billion, bringing his wealth to $18.5 billion.
This notable financial growth occurred despite challenges faced by their businesses in the country, including the devaluation of the naira and inflation. Forbes attributes the surge to a significant increase in the valuation of their companies, driven by heightened investments in shares.
Aliko Dangote maintains his position as Africa's wealthiest individual for the 13th consecutive year, topping Forbes' 2024 Africa's richest list. The devaluation of the naira in 2023, coupled with political uncertainty, did not prevent him from claiming the top spot, highlighting the resilience of his diversified business empire.
Analysts suggest that the recent spike in the stock prices of Dangote Cement, Bua Cement, and other stocks contributed significantly to the billionaires' wealth growth. Investors' interest in these stocks led to a record-level surge in the Nigerian stock index, surpassing the 100,000 basis points milestone.
Investor relations expert Ayorinde Akinloye emphasizes that the worth of the listed businesses held by the billionaires plays a crucial role in determining their wealth. He explains that if the share prices of their companies rise, their overall value increases.
Gbolahan Ologunro, a portfolio manager at FBNQuest, attributes the wealth increase to the positive performance of the stock market. The doubling of the share price of Dangote Cement, in particular, has offset the impact of naira devaluation, resulting in a positive effect on Dangote's wealth in dollar terms.
Despite recent months witnessing the impact of naira devaluation on their wealth, analysts suggest that doubling the price of their naira-based assets could partially offset the effects and have a positive impact on their USD assets.
In a broader context, Forbes' 2024 Africa's Richest list reports a slight increase in the fortunes of the continent's wealthiest individuals over the past 12 months, with the cumulative net worth of the top 20 billionaires reaching $82.4 billion, a $900 million increase from the previous year. This positive trend is attributed, in part, to the resurgence of Femi Otedola's fortune, marking a reversal from the decline experienced a year earlier.
The surge in wealth among Nigeria's billionaires reflects the dynamic interplay of market forces and strategic investments, offering a glimpse into the resilience and adaptability of the country's economic elite amidst challenging circumstances.