Dangote’s wealth rises to highest within decade

Nigerian tycoon Femi Otedola said he will add to his purchases of Dangote Cement Plc’s shares after his recent acquisition in part helped propel the wealth of billionaire Aliko Dangote, founder of the cement maker, to the highest in a decade.

Dangote Cement’s shares have more than doubled this month helping add US$6,9 billion to its founder’s wealth, which jumped to US$22 billion as of Thursday, according to the Bloomberg Billionaires Index. Otedola’s purchases are “work in progress,” after the tycoon bought the stock last week, he said. The cement maker is also seen as a proxy for Dangote’s new refinery, the world’s biggest such facility in a single location.

The maker of the construction material is attractive because it’s the “only Nigerian cement company with two export terminals and a substantial export capacity,” Otedola said in a series of text messages. The diversification into the refining positions him to capitalise on the growing demand “in Nigeria and internationally, potentially leading to a considerable increase in revenue and, consequently, his overall wealth,” he said.

Otedola’s investment is timely for Africa’s richest man, whose firm was subject of an anti-graft commission raid this month. The visit by the authorities was an “unwarranted embarrassment,” the group said, adding that it didn’t face any accusations of wrongdoing. Otedola’s past purchases have triggered rallies in shares of the target firms.

In 2022, he invested in FBN Holdings Plc, and last year his acquisition of a stake in Transnational Corp. of Nigeria propelled the company’s shares more than 600 percent. Otedola later exited Transcorp. The surge in cement maker’s shares — the company has the biggest weight on the equity benchmark — paced a 36 percent jump in the NGX All Share Index, making for the best January since at least 1998. — Bloomberg.