Nigeria’s leading billionaire investors and business moguls, Aliko Dangote and Abdulsamad Rabiu, witnessed growth as their companies collectively amassed nearly N10 trillion in capital gains at the end of the first quarter ended March 2024.
Regardless of the daunting economic conditions in Nigeria, characterized by a staggering inflation rate of 31.70% and dwindling consumer purchasing power, both BUA Foods and Dangote Cement defied the odds and achieved remarkable capital gains exceeding 200% combined.
Analysis from the Nigeria Stock Exchange reveals the resilience of these companies in navigating the challenging economic landscape.
Despite the forex crisis, which has escalated importation costs, and the persistent inflationary pressures, BUA Foods and Dangote Cement demonstrated robust performance and strategic acumen, contributing significantly to their impressive capital gains during the first quarter of 2024.
The context
In Q1 2024, the NGX posted an increase of 39.84%, hitting an All-Share Index of 104,562.06 points.
The market capitalization of the NGX also appreciated by 44.5% to close the quarter at N59.13 trillion, representing an N18.21 trillion increase from N40.92 trillion at the start of 2024.
Breakdown of the companies
Aliko Dangote
for Africa’s wealthiest individual, Aliko Dangote, his cement company has emerged as the most capitalized firm in Nigeria, reaching a valuation of N10 trillion.
- Dangote Cement Plc experienced a remarkable surge in share price, soaring by 114.7% during the first quarter of 2024. The share price escalated from N319.90 to N686.70 over the quarter.
- Furthermore, the group’s market capitalization experienced a staggering appreciation of N6.25 trillion, surging from N5.45 trillion to N11.70 trillion within the same period.
- Dangote Cement’s dominance in the Nigerian Stock Exchange (NGX) also witnessed a notable increase, with its market share climbing from 13.32% at the quarter’s onset to 19.79% by the end, marking a substantial uptick of 6.47% points.
Abdulsamad Rabiu
As Nigeria’s second wealthiest individual, Rabiu witnessed remarkable success with his company, BUA Foods, the nation’s largest consumer goods company and a key entity within the BUA Group.
- In the first quarter of 2024, BUA Foods showcased an impressive performance on the Nigerian Stock Exchange (NGX).
- During this period, the company’s share price experienced a significant appreciation of 96.4%, surging from N193.40 to N379.90.
- Additionally, BUA Foods’ market capitalization witnessed substantial growth, increasing by N3.36 trillion. At the close of the quarter, the company’s market capitalization stood at N6.84 trillion, marking a notable rise from the N3.48 trillion recorded at the beginning of the year.
