Dangote Group receives $105.33m from CBN’s Dutch auction

• Published On: 10 August 2024 at 19:43

Dangote Group emerged as a big winner, acquiring at least $105.33 million in foreign exchange bids during the Central Bank of Nigeria's most recent Retail Dutch Auction.

According to Nairametrics, this amount accounts for approximately 13% of the $876.26 million disbursed by the CBN to qualified banks.

Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank were the main banks that secured the most FX for Dangote's companies in the most recent CBN Retail Dutch Auction. Four of these banks are among the top ten banks that received the most FX at the CBN's auction.

These banks were critical in facilitating the import of equipment, spare parts, and raw materials needed to keep Dangote's vast industrial empire running efficiently.

Dangote's firms spent a considerable share of the foreign money given to them on spare components for various industrial and manufacturing processes. For example, Dangote Agro Sacks Limited's foreign exchange offer included spare parts for manufacturing and weaving machinery.

As previously reported, Dangote Group's share prices fell by double digits in July, resulting in a market value loss of around N1.21 trillion.

The group's President, Aliko Dangote, saw his net worth affected by the month's market losses.

The CBN held a retail Dutch auction on August 6, 2024, with the purpose of distributing FX to end users, including those with trade-backed demands, as part of its naira stabilisation strategy.