According to the latest reports, the wealth of Africa’s richest man, Aliko Dangote, has experienced a massive increase of $2.3 Billion, making the Billionaire wealthier than he has been in the last seven years.
The spike in his fortunes for the second year running is as a result of his profit from his cement manufacturing unit, meaning Dangote will close 2021 with a net worth of more than $20.1 billion in his coffers – the highest he has earned since 2014.
Experts claim that the exponential increase in the share price of Dangote Cement PLC and the unit price increase in oil, fertilizer, and cement have helped the 64-year-old businessman increase his fortunes.
The report was released by the Bloomberg Billionaires Index – which was one of the first rankings to reveal Dangote’s wealth in June 2014 as $26.7 billion – a mark the Nigerian businessman will be looking at hitting again soon. Many analysts believe that the Northern Nigeria billionaire is on track to hit the $30 billion mark within the next two years when his refinery – currently under construction, will begin to operate at full capacity.
The Bloomberg Billionaires Index is a daily ranking of the world’s top 500 richest people. The index debuted in March 2012 and tracked the net worth of the 500 wealthiest people on the planet. It is a dynamic measure of personal wealth based on changes in markets, the economy, and Bloomberg reporting. Each net worth figure is updated every business day after the close of trading in New York, United States.
As construction materials and cement continue to experience an upward curve in prices, Dangote is expected to record a huge increase in his revenue. This year, the business tycoon began exporting fertilizer to the United States and Brazil after completing his fertilizer plant capable of 3 million tons of urea and ammonia annually. The completion of his $19 billion refinery project, which is believed to kick start operation next year, is believed to have the potential of doubling his revenues within two years – as it will meet the fuel demand of Africa’s most populous black nation.
However, Dangote, who was born into a wealthy African Nigerian northern Muslim family, has been accused of taking advantage of unfair government policies that promote monopoly. They say the government has continued to give the businessman an unfair market advantage that does not encourage other investors to compete in the production or importation of cement – his major business division.
Dangote has experienced a close business relationship with the Nigerian government and elites. Therefore, the notice by the Federal Government to acquire a 20% stake in the Dangote refinery has sparked reactions from citizens who claim the government has intentionally refused to build a refinery in the country and frustrated the efforts of investors to build refineries, so as to give Dangote an undue market advantage.
Earlier this year, the Nigerian government granted Dangote Cement over $54 million in tax credit, something that competitors claim is an undue market advantage. Also, cement prices in Nigeria remain one of the highest globally, despite the presence of raw materials and production plants in the country – something critics say is due to the government’s monopolistic advantage for Dangote cement which has squashed competition in the sector.
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