Dangote, Rabiu Lose $3.8 Billion As Otedola Returns To Forbes’ Billionaires List

Nigerian billionaires, Aliko Dangote and Abdulsamad Rabiu, have seen a significant decrease in net worth, with a combined loss of $3.8 billion over the past year, as reported by Forbes World’s Billionaires List 2024.

This decline represents a 16.9 percent reduction, bringing their combined wealth to $18.6 billion from $22.4 billion.

Forbes, known for its real-time tracking of billionaire fortunes, noted that Dangote’s wealth diminished by $0.8 billion to $13.4 billion, while Rabiu experienced a more substantial decrease of $3.0 billion, bringing his total to $5.2 billion.

Conversely, Mike Adenuga’s wealth increased by $0.6 billion, reaching $6.7 billion.

This financial downturn for Dangote and Rabiu is partially attributed to the Central Bank of Nigeria’s (CBN) currency floatation in June, which led to a significant devaluation of the naira against the U.S. dollar.

The CBN’s merging of FX market segments and adopting a flexible exchange rate have further impacted the naira’s value, exacerbating the billionaires’ wealth depreciation.

Despite these setbacks, Dangote managed to reclaim his title as Africa’s richest person earlier this year, surpassing South Africa’s Johann Rupert.

Additionally, Femi Otedola re-entered the Forbes list with a net worth of $1.4 billion, attributed to his stake in Geregu Power.

Globally, the number of billionaires has reached an all-time high of 2,781, with total fortunes amounting to $14.2 trillion, according to Forbes.

The list’s top 20 contributors and the United States, housing a record 813 billionaires, have significantly fueled this wealth accumulation.

While China holds the second spot with 473 billionaires, despite economic challenges, India ranks third with a record 200 billionaires, showcasing global wealth’s dynamic and ever-evolving landscape.

Here are further details on the Nigerian billionaires:

Dangote

Dangote, founder and chairman/CEO of Dangote Group, maintained his top position as the richest man in Africa. His fortune rose to $13.4 billion — earning him the 144th position.

“He owns 85 percent of publicly-traded Dangote Cement through a holding company. Dangote Cement has a production capacity of 48.6 million metric tonnes annually and has operations in ten countries across Africa,” Forbes said.

It added that after many years in development, Dangote’s fertiliser plant in Nigeria began operations in March 2022. Dangote also has an oil refinery, which was inaugurated in May 2023.

Adenuga

According to Forbes, Adenuga, chairman/CEO at Globacom Limited, has a $6.7 billion net worth and was ranked 409th.

“Adenuga built his fortune in telecom and oil production. His mobile phone network, Globacom, is the third largest operator in Nigeria, with 55 million subscribers,” it said.

It added that his oil exploration outfit, Conoil Producing, operates six oil blocks in the Niger Delta.

“Adenuga got an MBA at Pace University in New York, supporting himself as a student by working as a taxi driver. He made his first million at age 26 selling lace and distributing soft drinks.”

Rabiu

Rabiu founded BUA Group, a Nigerian conglomerate active in cement production, sugar refining and real estate. His net worth, estimated at $5.2 billion, was placed at the 581st position.

In early January 2020, he merged his privately owned Obu Cement Company with the listed firm Cement Company of Northern Nigeria, which he controlled.

“The combined firm, called BUA Cement plc, trades on the Nigerian stock exchange; Rabiu owns 98.2 percent of it. He set up his own business in 1988 importing iron, steel and chemicals,” Forbes said.

Otedola

Otedola made his first fortune in commodities before selling his shares in Forte Oil to invest in the energy business. With $1.4 billion, he ranks 2,152nd on the list.

Otedola is chairman of Geregu Power, a power generation business, and owns more than 70 percent of the shares, according to Forbes.

According to Forbes, in 2022 and 2023, Otedola sold down a Geregu stake that was once more than 95 percent to attract institutional investors.

“Investors in Geregu include the Nigerian government, the Afrexim Fund for Export Development in Africa and the State Grid Corporation of China. He also owns properties in Lagos, Dubai, London and Monaco, and holds shares in Zenith Bank and FBN Holdings.”