Dangote Group’s Market Value Drops by N1.21 Trillion in July Amid Refinery Dispute
In July 2024, companies under the Dangote Group experienced a significant drop in market capitalization, shedding approximately N1.21 trillion. The decline affected Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries, amid ongoing challenges faced by the Dangote Refinery.
During the month, the share prices of Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries decreased by 10%, 13.6%, and 19.8% respectively. This downturn led to a substantial loss in market capitalization: Dangote Cement alone saw a reduction of N1.12 trillion, bringing its market cap down to N10.07 trillion from N11.19 trillion. Similarly, Dangote Sugar Refinery’s market cap fell by N71.06 billion, ending the month at N451.26 billion from N522.32 billion. NASCON Allied Industries also experienced a decline, with its market cap dropping by N19.7 billion, from N93.2 billion to N79.7 billion.
These losses were reflected in the broader performance of the Nigerian Exchange Limited (NGX), which saw a 2.28% decline in July, with its total market capitalization decreasing from N56.602 trillion to N55.514 trillion.
The financial hit also impacted Aliko Dangote’s personal fortune. The Bloomberg Billionaires’ Index reported a reduction in Dangote’s net worth from $14.8 billion to $13.6 billion, equating to a loss of about $680 million.
The decline in market value and personal fortune comes amidst a dispute involving Dangote Refinery, the Nigerian National Petroleum Company Limited, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The details of this dispute have yet to be fully resolved, contributing to the uncertainty affecting the Group’s market performance.