According to the Bloomberg Billionaire Index (BBI), Nigerian billionaires Aliko Dangote and Abdulsamad Rabiu have experienced a combined loss of $5.85 billion due to currency float. This loss was recorded as of June 15, 2023. Aliko Dangote, the chairman and CEO of Dangote Group, saw a decline of approximately $3.12 billion in his wealth, while Abdulsamad Rabiu, the CEO of BUA Group, lost $2.73 billion.
These losses coincided with the Central Bank of Nigeria’s decision to float the country’s currency. The currency float exchange rate system allows the value of the local currency to be determined by market forces of supply and demand in the foreign exchange market, rather than being fixed by the central bank. This change in the foreign exchange markets, resulting from the currency float, is believed to have contributed to the billionaires’ losses.
Following the unification of Nigeria’s foreign exchange system, the market quickly responded. On that particular Wednesday, the naira had traded between N700 to N755 against the US dollar, but it closed at N664/dollar at the investors and exporters (I&E) window. The I&E window serves as the official exchange rate trading platform in Nigeria, catering to investors, exporters, and end-users. The exchange rates in this window are determined based on prevailing market conditions.
According to the Bloomberg Billionaire Index (BBI), Nigerian billionaires Aliko Dangote and Abdulsamad Rabiu have experienced a combined loss of $5.85 billion. This loss was recorded as of June 15, 2023. Aliko Dangote, the chairman and CEO of Dangote Group, saw a decline of approximately $3.12 billion in his wealth, while Abdulsamad Rabiu, the CEO of BUA Group, lost $2.73 billion.
