Dangote Slams 2023 Naira Devaluation as Biggest Mess’

Aliko Dangote, the Chairman of Dangote Industries Limited, recently voiced his concerns about the devaluation of the Naira in 2023, describing it as the “biggest mess” the company faced during that period. Speaking at the annual general meeting of Dangote Sugar Refinery Plc on May 1, 2024, he emphasized the significant challenges posed by the devaluation from N460 to N1,400, which had a profound impact on the company’s operations and profitability.

Dangote highlighted the broad implications of this devaluation on Nigeria’s economy, noting that many companies, particularly those in the food and beverage sector, were similarly affected. He expressed determination to ensure that Dangote Industries Limited would be able to pay dividends to its shareholders despite the mess created by the Naira devaluation.

The devaluation has not only affected Dangote Industries but also had a cascading effect on other major companies in Nigeria. For instance, it contributed to the first annual loss reported by Dangote Sugar Refinery Plc, with a net loss of 73.8 billion naira in 2023, compared to a profit of 54.7 billion naira in the previous year. The devaluation led to a 9.5% increase in revenue to 441.45 billion naira, but the company faced increased finance and input costs that contributed to the loss.

The devaluation of the Naira in 2023 has been a pivotal event for Nigeria’s economy, with significant implications for both domestic and international business operations. It remains to be seen how companies like Dangote Industries Limited will navigate these challenges and adapt to the evolving economic landscape in Nigeria.