How Nigerian Billionaires, Dangote, Abdulsamad Rabiu Lost $5.85billion After Naira Floating

Nigerian billionaires, Aliko Dangote and Abdulsamad Rabiu, who have been listed among the 500 richest men, have both lost $5.85 billion.

Data available on Bloomberg Billionaire Index, BBI, a daily ranking of the World’s richest people portal as at June 15, 2023, showed negative changes in the calculations of the wealth of the Nigerian businessmen.

It also provides details on the calculations of net worth analysis on each billionaire’s profile page.

The index revealed that Dangote, chairman and chief executive officer (CEO) of Dangote Group, lost about $3.12 billion in the latest update.

Similarly, Rabiu, CEO of BUA Group, was said to have lost $2.73 billion from his wealth.

The losses occurred just 24 hours after the Central Bank of Nigeria (CBN) floated the country’s currency.

According to TheCable, changes in the foreign exchange markets occasioned by the recent floating of the naira may have contributed to the billionaires’ losses.

Similarly, Rabiu, CEO of BUA Group, was said to have lost $2.73 billion from his wealth.

Changes in the foreign exchange markets occasioned by the recent floating of the naira may have contributed to the billionaires’ losses.

The currency float exchange rate system allows the local currency to be set by the forces of demand and supply within the foreign exchange market.

In Nigeria, this means the elimination of a fixed price for forex trading within the country. This removes the direct intervention of the CBN from the forex market.