Dangote reveals he has lost over N50b to ‘flexible exchange’ policy

Monday, June 27, 2016

Africa's Richest man and President of Dangote Group, Aliko Dangote, over the weekend revealed that his company has lost over N50 billion to the flexible foreign exchange policy since the Federal government introduced it last week Monday June 20th.

The apex bank had scrapped the dual exchange rate policy, creating a single window for the trade in Naira.

The Nation reports that Dangote made the disclosure when he spoke during an inspection tour with Vice President Yemi Osinbajo and some Ministers had on the project sites of Dangote Fertiliser and Dangote Refinery in Lekki, Lagos.

“We have been badly affected like any other company. This week (last week), the Central Bank removed the peg that has held the naira at the official rate of 197 for the last 16 months, leading to a 30 per cent devaluation as the currency traded freely on the interbank market. This devaluation alone, we have lost over 50 billion naira ($176 million). The gas, which is our main source of power, is priced in dollars. If there is 40 per cent devaluation, your price will go up by 40 per cent. Every single aspect of the production will go up by that percentage,” he said.