Dangote Group Loses $680 Million in Market Capitalization Amid Refinery Crisis
A shocking decline in market capitalization has hit the Dangote Group, one of Africa’s largest conglomerates, with a staggering loss of N1.21 trillion (approximately $680 million) in July 2024. The downturn is attributed to the ongoing crisis surrounding Dangote Refinery, which has sparked a heated dispute with Nigerian National Petroleum Company Limited and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The affected companies under the Dangote Group include Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries. These companies recorded a decline in their market capitalization, with share prices plummeting by 10%, 13.6%, and 19.8% respectively. Dangote Cement suffered the largest loss, dropping N1.12 trillion from N11.19 trillion to N10.07 trillion.
Dangote Sugar Refinery Plc also faced a significant decline, losing N71.06 billion from N522.32 billion to N451.26 billion. Meanwhile, NASCON Allied Industries posted a N19.7 billion decline, moving from N93.2 billion to N79.7 billion.
The combined losses reflected a N1.02 trillion ($680 million) hit to Dangote’s fortune, which has subsequently affected his net worth. According to the Bloomberg Billionaires’ Index, Dangote’s net worth dropped to $13.6 billion from $14.8 billion in July.
The dispute surrounding Dangote Refinery is at the center of this market turmoil. As the crisis continues to unfold, it remains to be seen how the Dangote Group will recover from this significant financial blow.
