Aliko Dangote, Chairman of Dangote Industries Limited, has strongly criticized the decision by President Bola Tinubu’s administration to float the naira, calling it the “biggest mess” for his company and other business owners in 2023.
Speaking at the Annual General Meeting of Dangote Sugar Refinery Plc on Tuesday, Dangote stated that the policy, which allows market forces to determine the naira’s value, has had a devastating impact on many businesses, including his own. He noted that the devaluation of the naira from N460 to N1,400 has resulted in significant operational losses for several manufacturing enterprises due to fluctuations in the naira’s value against the US dollar.
Dangote’s remarks come after the country’s prominent billionaires, including himself and Abdulsamad Rabiu, lost a combined $5.85 billion following the implementation of the policy. According to the Bloomberg Billionaire Index, the wealth of Nigerian businessmen has been negatively impacted, with Dangote and Rabiu both listed among the 500 world’s richest men.
The naira floatation policy has also raised concerns about Nigeria’s foreign exchange reserves, which have been declining at an alarming rate. Bloomberg reported in April that the country was burning through its foreign exchange reserves at a rate not seen in four years, with liquid reserves declining 5.6% since March 18 to $31.7 billion as of April 12.
However, the Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has defended the shift in reserves, stating that it is a normal occurrence in any country’s reserves situation, where debts are due and payments need to be made to maintain credibility.
Despite this, Dangote’s criticism of the policy highlights the significant challenges faced by businesses in Nigeria due to the naira floatation. As one of the country’s largest employers and investors, Dangote’s concerns are likely to resonate with other business owners and stakeholders.
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