Two of Nigeria’s wealthiest individuals, Aliko Dangote and Abdulsamad Rabiu, have experienced a combined loss of $5.85 billion, according to the Bloomberg Billionaire Index (BBI) as of June 15, 2023. The BBI is a daily ranking of the world’s richest individuals, providing insights into changes in the net worth of businesspeople.
The recent evaluation of the wealth of Nigerian entrepreneurs displayed negative fluctuations on June 15, 2023, as reported by the BBI. Aliko Dangote, the chairman and CEO of the Dangote Group, incurred a loss of approximately $3.12 billion, while Abdulsamad Rabiu, the CEO of BUA Group, saw his fortune decrease by $2.73 billion.
The losses occurred shortly after the Central Bank of Nigeria (CBN) introduced a floating exchange rate for the local currency. The Cable, a Nigerian newspaper, suggests that this currency float may have influenced changes in the foreign exchange markets, ultimately impacting the billionaires’ wealth.
Under the new exchange rate mechanism, the local currency’s value is determined by the forces of supply and demand in the foreign exchange market. This means that Nigeria no longer maintains a fixed exchange rate, and the CBN’s direct intervention in the foreign exchange market is eliminated. The Nigerian FX system’s unification prompted a swift response from the market.
According to data from the FMDQ OTC Securities Exchange, the naira traded at N664/dollar at the investors and exporters (I&E) window on Wednesday, with fluctuations observed between N700 and N755 against the US dollar. The I&E FX window serves as the country’s official platform for exchange rate trading, catering to investors, exporters, and end users, with exchange rates determined by prevailing market conditions.
Source: Pulse
