Devaluation of the naira was Nigeria's biggest mess - Aliko Dangote

Aliko Dangote, Chairman of Dangote Industries Limited, attributed the country’s struggles in 2023 to the devaluation of the naira.

He made this comment at the annual general meeting of Dangote Sugar Refinery stating that the devaluation had a significant impact on many companies in Nigeria including his own.

Dangote expressed his determination to ensure that dividends would still be paid, despite the challenges faced. He highlighted the drastic devaluation of the naira from N460 to N1,400 as a major factor contributing to the financial difficulties experienced by businesses, particularly in the food and beverages sector.

He emphasized the importance of overcoming these challenges and striving for financial stability, especially in light of the economic turmoil caused by the currency devaluation in 2023. Dangote acknowledged that many companies would struggle to pay dividends that year, but remained hopeful for a positive turnaround.

He said;

“We are doing whatever it takes to make sure that at the end of the day, we will be paying dividends because if you look at our dividends last year, it was almost 50 percent more so we will try and get out of the mess.

“The biggest mess created was actually the devaluation of the naira from N460 to N1,400. You can see almost 97 percent of the companies, especially in food and beverages businesses, none of them will pay dividends this year for sure but, we will try and get out of it as soon as possible.

“We want to see that at the end of the day, no matter how small, we will be able to pay some dividends, especially if there is a rebound of the naira.”

In 2023, Nigeria experienced significant economic turbulence due to the devaluation of the naira, leading to price increases and a higher foreign exchange rate.

This economic instability resulted in rising inflation and increased poverty rates, prompting the government to take action.

The removal of fuel subsidies, the suspension of the former Central Bank Governor, Godwin Emefiele and reforms in the foreign exchange market were among the measures implemented to address the economic challenges faced by the country.

Despite efforts to stabilize the economy, Nigeria continues to grapple with hardships in 2024, with fluctuating prices of good and rising fuel costs remaining major concerns for the population.

According to reports, Tinubu inherited anemic economic growth, record debt, and shrinking oil output.

In 2024, Nigeria is still faced with hardship and prices of goods continue to flutuate as well as the increase in fuel prices.