Dangote Slams CBN Naira Devaluation As 2023’s ‘Biggest Mess’ After Billions in Losses

Dangote has slammed the Naira Devaluation by the CBN as 2023’s ‘Biggest Mess’ after billions in losses.

 

NewsOnline Nigeria reports that at the annual general meeting of Dangote Sugar Refinery Plc, Aliko Dangote, Africa’s wealthiest man and Chairman of Dangote Industries Limited, expressed his dismay at the devaluation of the naira, Nigeria’s currency.

He described it as the biggest mess for his company in 2023.

 

Dangote remarked on the adversarial domestic business environment, particularly noting the turbulence of an election year that also ushered in a new government.

 

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While addressing shareholders, Dangote reassured them of the conglomerate’s commitment to paying dividends this year. He acknowledged the widespread impact on Nigerian companies, especially in the food and beverages sector, which struggled to meet dividend obligations.

 

“We are doing whatever it takes to ensure that ultimately, dividends are disbursed. Comparing to last year, our dividends increased by almost 50 percent, so we are determined to navigate through this situation,” stated Dangote.

He emphasized that the naira’s drastic devaluation, from N460 to N1,400, posed significant challenges, with a vast majority of companies, particularly in food and beverages, unable to pay dividends. However, Dangote expressed optimism in overcoming these hurdles.

“Our priority is to ensure some dividends are paid, even if modest, particularly in the event of a naira recovery,” Dangote affirmed.

 

Notably, Dangote disclosed a staggering N164 billion FX loss attributed to the country’s deteriorating economic conditions, primarily stemming from the naira devaluation.

 

NewsOnline Nigeria recalls that the Central Bank of Nigeria (CBN) devalued the country’s currency in June after it collapsed all segments in the FX market into the Investors’ & Exporters’ Window.

 

The large devaluation of the naira that followed the implementation of foreign exchange reforms last year dampened the earnings of businesses with significant FX exposure, the financial results of several firms released in the past week show.