Dangote Loses $7.8 billion as Naira, stocks plunge | Welcome to Linda Ikeji's Blog

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Wednesday, 24 December 2014

Dangote Loses $7.8 billion as Naira, stocks plunge

According to a report by Forbes, Dangote, Tony Elumelu and Jim Ovia lost a lot of money as a result of the devaluation of Naira. The Forbes report by below...
A few weeks ago, the Governor of the Central Bank of Nigeria, Godwin Emefiele, announced a nearly 10% devaluation of the Naira, Nigeria’s currency, after admitting that a plunge in world oil prices and dwindling dollar reserves were making it difficult to defend the value of the currency. The Naira is now trading at N187 to $1, compared to N165 in November. In dollar terms, the devaluation has knocked more than $40 billion off the value of Nigeria’s economy.
Dangote is the biggest loser among Nigeria’s richest people as the Naira’s slump, coupled with falling stock prices, has erased more than $7.8b of his fortune since Feb, when Forbes locked in the values for its annual ranking of the World’s Billionaires.
Dangote was worth $25 billion at the time; as of market close on Tuesday, he’s worth $17.2 billion. More than half of the drop in his fortune has happened since early November. As of Nov. 7, Dangote was worth $21.6 billion, $4.4 billion more than now.
Here’s why: The last few weeks have been a bit of a disaster for many companies listed on the Nigerian Stock Exchange. Several blue-chip stocks such as Dangote Cement, Zenith Bank, Transcorp and United Bank of Africa among several others have hit one-year-lows as a result of the fall in oil prices, a general uncertainty regarding the 2015 general elections, Central Bank regulatory headwinds, and weak earnings from large cap companies. These have all contributed toward putting naira-denominated assets including equities at risk.
After Dangote, the second biggest loser among Nigeria’s ultra-rich is Tony Elumelu, the Chairman of Heirs Holdings, an investment company. Heirs Holdings, which is wholly-owned by Elumelu, is the controlling shareholder in Transcorp, a publicly-listed conglomerate with interests in power production, hotels and agriculture. Transcorp’s current market capitalization is now $700 million, down from $1.4 billion at the beginning of November. Heirs Holdings has lost an estimated $345 million in paper value on Transcorp, and its stake in the company as at Monday is now worth roughly $400 million, down from $700 million. Elumelu’s investments in other listed companies like UBA, Africa Prudential PLC and UBA Capital have shed a little over $27 million in value.
Other big losers include Nigerian multi-millionaire banker Jim Ovia, a co-founder of Zenith Bank. The value of his stake in the financial services provider is $240 million as of late Monday, down from more than $350 million last month. He owns a 9% stake in the bank.

88 comments:

D J STELCH said...

Wow, that means we should expect a Massive increase in his already dropped Cement Price?? Hmmm.. Its Business, you gain to loose..

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.Disclaimer:: Raise Your Words, Not Your Voice. It Is Rain That Grows Flowers, Not Thunder..

The Good Wife said...

Oh my!!! Datz in dollars!!!!! Price of dangote cement, salt, spaghetti will increase nw! To make up for d loss

jigsaw said...

Dats a whole lot

kate Isangha said...

Him get

lucky chukz said...

Pathetic

Lovely mee said...

Not a good one at all,

Debbie Chelsea said...

Ha

snowflix said...

Ehya! Too bad for him and others tho #onelovefromSnow#

ary said...

Awwww imagine how this sh*t will hit the common man!

Odeh Peter said...

That's none of my business...... He is making his money am making mine



SUPERSLIMC4

charles ems said...

GEJ shld just go! Him bad luck too much. Shuu!

joystickextender@gmail.com said...

That's a whole lot of money m sure he will make it back

Meanwhile email me to know how u can enlarge your joystick

Anonymous said...

2014 seem to be a bad year for all of us,but I know Alhaji will overcome all this lost,I just hope he learnt not to be emotive about business. When he was cutting down on cement price over GEJ ,I knew it was a bad move,but who am I to tell Seriki Kudi that he was wrong, either way I am very optimistic that Alhaji would get through this,cause the more he falls,the higher he bounce back.

Easy-E said...

Shege...hand don dey catch em one by one....i neva knew it wil affect dem ooo lols

Anonymous said...

Crazy Things Uniport Babes Do in their Room when they ‘re Bored.


Village Girls dancing while bathing in the river

Rasheeda Abubakar Ak said...

should we start crying now? maybe

Akin Odunsi said...

Chei! He won't give me the money he promised me again o! Chei!

@gr8akin

Henry Eze said...

Its necessary they have excess..let them lose a little

Ugochukwuka said...

Big man big trouble

* * commenting live from river ethiope **

Ekwuribe Agape said...

RICH ALSO CRY.....SURE IT DOESNT CHANGE HIS WORTH
..........
AIRTEL BRING 3G TO H5

Henry Eze said...

Its necessary they have excess..let them lose a little

ijaybabe nneoma said...

Africans shld be wise. The western world do not want us to anywhere close to them. This is their doing. We have God given natural resources (exess). We shldnt be lacking in anything if we know what the oyibos are up to and what they are made of.

EDDY WIZ said...

MR EDDY said.
Make una take heart.
^
^
^™THAT EDO BOY.COM~

VIVIAN OGECHI said...

Choi wat a pity

EDDY WIZ said...

MR EDDY said.
Make una take heart.
^
^
^™THAT EDO BOY.COM~

EDDY WIZ said...

MR EDDY said.
Make una take heart.
^
^
^™THAT EDO BOY.COM~

EDDY WIZ said...

MR EDDY said.
Make una take heart.
^
^
^™THAT EDO BOY.COM~

BB Passport ON my Mind said...

is he complaining? once there is life there is money too!

Wil iam said...

Their own better. Me I don't even have transport fare to go out n look for work

adegbulu adesayo said...

Oh sorry sir,just don't know wt 2 say,bt its nt easy loosing a whole amount of money,God will refund you double,even more than wt u could ever imagine,u ve touched lives Alhaji.

Olapeju Oluwamuyiwa said...

THEY HAVE CONQUERED MONEY.MONEY CANNOT CONQUERE THEM JOR..LINDA YOU FEEL ME?...AKA...NEVER DRY

oseyi gabriel said...

Hmm, that's bad news play big, loss big.

christie benjamin said...

He's a rich man so I believe its a matter of short time before he recovers his lost
¤
¤¤¤GUTS OVER FEAR¤¤¤
¤
¤¤¤QUEENMAYA¤¤¤

Oshiomah Victor said...

Eya!.. Rich men cry too.

Anonymous said...

This is dedicated to Linda.

http://www.hulkshare.com/jesci/i-need-you-mp3

Olamilekan Yusuph said...

All tanx to the wrong timing of the devaluation! A question I wud love to ask Nigerians is that wht has been happening to the excess on income generated from crude oil as a result of lower benchmark for previous our budgets.

@lwkmd_naija - follow on instagram/twitter said...

Even me my 1000naira stock disappeared.


@lwkmd_naija

carlos iyke said...

These naira devaluation really affecting the economy
$.
$.
@Mr Endowed via Lumia phone

UGBALA MAC-CHARLES said...

jeez we are gettin worst oh. Where is okonjo?

kate Isangha said...

Him get de bar

PAUL CHUKWUDI CHUKWURA said...

hmm what happen nah

Bonita Bislam said...

Why won't foreign investors run? If not self imposed inflation,its borrowed inflation with the consequent devaluation of the naira that comes with it.I pity the likes of Dangote who are bent on improving the fortune of this country via investment.The govt needs to come up with epic policies !

Richard Afon Yinkå Ray said...

Na wah ooo

NWIGWE VICTOR ANAYO said...

Story for d gods

@MEETDREALEVANS said...

Story for olokun

AQO said...

They'll definitely recoup their losses.



Jesus is Lord.

Anonymous said...

Before y'all staart yelling that it's the Nigerian economy! Nah oil and has prices dropped, and Becus Nigeria is one of the OPEC countries of cus we would be affected! So until Saudi Arabia decides to stop over producing, gas prices will keep going down! Not like I'm complaining at 2 dollars a gallon! It is well

Akindele olamide said...

Lol. Wat a lost after donating so much 4 oga jona 4 campaign

Akindele olamide said...

Lol. Wat a lost after donating so much 4 oga jona 4 campaign

fredy obot said...

eyah sorry o Sir

Jules Louis said...

Big money. Bigger problems. I wonder when our currency will have a little value and dignity again.

Anonymous said...

This man does not suppose to deserve this mess




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Chikaodili Ndife said...

That's a great loss, really bad for him

Fisayo Ogunmola said...

This exchange rate ish is becoming serious! The government should look into this matter before it becomes worse than it is now

lord flacko said...

Yet dangote wants to donate for jonathan's campaign. Nigeria is in a huge financial mess and come 2015 we will bear the full brunt of it

diamond berry said...

You shall recover all

richard oseji said...

Ok o! We are moving 4ward! This xmas is so not merry! 187naira 2 a dollar! SMH

Anonymous said...

Its not like the devaluation of the Naira will make any difference among majority of Nigerian who are already living well below the poverty line. The only people who will suffer the loss are the billionaire. And maybe that is a good thing. They could use a little discipline and reality. The whole world is suffering from the oil crisis, but developing countries like Nigeria will be the ones who feels the pinch the most. Had Nigerian government been responsible enough as opposed to looting our resources for their own personal gain, our economy would have been able to withstand this ongoing global oil crisis. Its a crisis because even Canada(that also produce oil) is suffering the pinch also. Dangote and the rest billionaires will be just fine. I'm only worried about people already struggling to get their salaries paid when the oil crisis was not an issue. What will they do now? How will they survive? Nigerian leaders are just evil. They have no conscience. Otherwise, how can you treat your people the way they treat us? SMH

Anonymous said...

the nation have lost more than usd50 billion while jona only borrowed usd1 billion. Wot a shame - international borrowing usually comes with devaluation of d country currency. Naira have never been so under valued. Wot a shame, jona is not fit period

Anonymous said...

sales job available. for Port-Harcourt residents only. Minimum qualificatn is S.S.C.E.Send your c.v to ceeveeroom@gmail.com immediately.

Anonymous said...

Jonathan will replace the money.

Anonymous said...

Jonathan will replace the money.

OBEYA FRIDAY's Official Website said...

Nigeria has started a very bad practice of governance.
I don't know why they keep slumping this. It has affected so many businesses around the nation since they started this rubbish.

Just like I do say in my articles; and most of my subscribers sometimes reason with me.
"If you were given a one day opportunity to rule this country, how and what would you do?" Most of them said different things; yes, because just as we are different human being so also our minds.

But to be sincere, we have to do the right thing.

OBEYA FRIDAY's Official Website said...

Nigeria has started a very bad practice of governance.
I don't know why they keep slumping this. It has affected so many businesses around the nation since they started this rubbish.

Just like I do say in my articles; and most of my subscribers sometimes reason with me.
"If you were given a one day opportunity to rule this country, how and what would you do?" Most of them said different things; yes, because just as we are different human being so also our minds.

But to be sincere, we have to do the right thing.

OBEYA FRIDAY's Official Website said...

Nigeria has started a very bad practice of governance.
I don't know why they keep slumping this. It has affected so many businesses around the nation since they started this rubbish.

Just like I do say in my articles; and most of my subscribers sometimes reason with me.
"If you were given a one day opportunity to rule this country, how and what would you do?" Most of them said different things; yes, because just as we are different human being so also our minds.

But to be sincere, we have to do the right thing.

Now, you see what it has caused Dangote? That was just the one you heard; there are many other people who also suffered from this slumping of naira to dollar.

Okoro said...

Quite a lot.

ebonyz... said...

Na was oh! Pele

Anonymous said...

Wow that's huge amount of money no wonder the price of cement increase from 1500 to 1950 Naira. Well is good for you because you are also a member of corrupt PDP member. This Man gave GEJ 10Million naira just to support GEj so na God catch you for us. @YachamBulus

Gbemisola Malette said...

Uhm, what does this have to do with an entrepreneur that worked his way to the top? Show a lil sympathy when something unfortunate happens to someone, billonaire or not! Some Nigerians...smh!

K.Adebayo said...

Its a 'lie'!
Nigeria is still the biggest economy in Africa while Dangote remains the richest billionaire in the continent.
Dangote, don't mind haters, na-you biko.
K.Adebayo
Kolacarinae@yahoo.com

Anonymous said...

Why should dangote appear in GEJ's fund raiser. When Gej incompetence has largely affected him negatively...

Stuch Bedsheet said...

O my beloved country, when will things get better. Inflation in 2015 is inevitable.

One and Only Ada David Omobabalanu

Anonymous said...

lazy man.go and work hard

Anonymous said...

Lmao!! The ECA is empty! #fact. They have cleaned out the so much so that the state government were owed arrears on their FAAC even before the crash of the price of crude! If this man comes back as president, I will know yes...Nigerians deserve the leadership they get! Not super keen on GMB, but he is the lesser of two evils.

Anonymous said...

Errr...honey...IT IS THE NIGERIAN ECONOMY! If they were lazy enough not to think diversification all these years then yes they are to blame! This oil is a diminishing resource and I think their lazy asses either forget or are just plain myopic! I can bet on the latter. Meanwhile, enjoying this $2 gas as well ;).

Anonymous said...

Wish you guys will spend some time reading about the world economy in between stalking Davido and Tiwari Savage ' s twitter.

Oil prices are crashing and nigeria is 80-90% dependent on oil. USA, used to be our reliable buyer but they've not bought a single barrel since June since they are also producing. We are trying to sell to India and China since we've lost the USA market but Saudi Arabia is competing severely with us by offering oil discounts per barrels. Nigeria is now experiencing a trade deficit and a budget deficit meaning we have more naira going after the dollar so naturally dollars will increase relative to the naira. Government has been trying to defend the value of the naira by releasing reserves, but unfortunately we don't have a lot of reserves, at is current rate we will deplete our reserves in no time.

Central bank has also increased prime rate of borrowing and saving to encourage investors to save in naira but that means all the loans tied to prime will also increase and when I mean loans that includes all business and personal loans. Therefore investors are running away with forex and the market is tanking that's why you see Dangote ' s net worth disappearing. How does this affect you? Prices of everything will increase in multiple folds, government will remove petrol subsidy since they simply can't afford it. Your current savings will get worthless as the naira depreciates in value. Who knows what the price of basic food and shelter will become.

Government is still deluded by calculating a budget based on oil price of $65 when in actuality the price of a Barrel of bonny light is now way below $65. In order to plug that deficit they will look for more opportunities to make money like taxing Nigerians to death. Tariffs for everything imported will keep increasing, I am sure you've all noticed the increase for importing cars by now and generally consumers will suffer.

I haven't even factored how our unique corruption further complicates this mess. My fellow Nigerians welcome to the late 80s. We've officially entered an austere period.

Merry Christmas everyone.

blaqgal said...

I tire oh

blaqgal said...

I tire oh

Akinrinbola Oladapo said...

Nigeria should better do something b4 .......

MrDanas said...

Sometimes in order to move foward you have to take 2 steps backward.... @Nigeria of my dreams, we will grow stronger....
@MrDanas says so

seunsblog said...

Rich people know how to make money, it's their hobby. I just pity naija. Thats why we need to vote out corruption, at least, we can start from there. We've tried PDP, nothing to show. Let's try APC, hopefully, we'll get there.

Anonymous said...

We deserved all this mess, I know it will surely get messier in days, weeks and months ahead.

Steve K Okanlawon said...

That's twice what Adenuga is worth!

Ayoola Ayobami said...

I know for sure something like this will happen, just because of the incredible loss of value which is happening to naira. Dangote will surely get up to it cuz he is a great business tycoon.
Curatainment

luvlyn said...

Wat a lost

Anonymous said...

This is the absolute truth..but no matter what no weapon of the west form again Africa and Nigeria will prosper

Anonymous said...

My dear that is ehn...they have indeed conquered money! The white man will continue to struggle to bring us down but they shall be frustrated with no success, ebola no do them..

Kelvin Jackson said...

One of those things life has to offer...

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