Biggest Mess Created In 2023 Was Naira Devaluation From N460 To N1,400-Dangote
In a dramatic turn of events that has shaken the Nigerian business landscape, Aliko Dangote, the Chairman of Dangote Industries Limited, has labeled the devaluation of the Naira as the “biggest mess” to hit his company and fellow entrepreneurs in 2023. The controversial move by President Bola Tinubu’s administration saw the Naira’s value plummet from N460 to a staggering N1,400.
During the Annual General Meeting of Dangote Sugar Refinery Plc, Dangote expressed his concerns, stating that the policy has left many businesses reeling from its effects. The manufacturing sector, in particular, has been hard-hit, with companies suffering operational losses as the Naira’s value fluctuated wildly against the US dollar.
“The biggest mess created was the devaluation of the naira from N460 to N1,400,” Dangote remarked. “You can see that almost 97 percent of companies in the food and beverage business will not be paying dividends this year. But we will try and get out of it.”
The aftermath of the devaluation saw Nigeria’s most prominent billionaires, including Dangote himself and Abdulsamad Rabiu, lose a combined total of $5.85 billion, as reported by the Bloomberg Billionaire Index.
Concerns have also been raised about Nigeria’s dwindling foreign exchange reserves, which have seen a significant decline not witnessed in four years. This has led to speculation that the Central Bank of Nigeria is exhausting its dollar reserves to prop up the Naira.
As of April 12, liquid reserves had fallen by 5.6% since March 18, to $31.7 billion. CBN Governor Olayemi Cardoso has addressed these concerns, suggesting that such shifts in reserves are typical when debts are due, and payments must be made to maintain a country’s credibility.
The economic turbulence has sent shockwaves through the market, leaving investors and business owners alike to navigate the choppy waters of Nigeria’s financial future.
