Dangote Group emerged as a huge winner, acquiring at least $105.33 million in foreign exchange bids in the most recent Retail Dutch Auction held by the Central Bank of Nigeria.
This allocation marks about 13% of the $876.26 million that the CBN disbursed to eligible banks, according to Nairametrics.
Zenith Bank, Access Bank, Providus Bank, Union Bank, and Sterling Bank were the primary banks that secured the most FX for Dangote’s firms in the latest CBN Retail Dutch Auction. Four of these banks are also on the list of the top 10 banks that got the most FX from the CBN’s auction.
These banks were crucial in enabling the importation of equipment, spare parts, and raw materials that were required to keep Dangote’s diverse industrial empire running smoothly.
Dangote’s companies used a significant portion of the foreign exchange allotted to them to acquire spare parts for various industrial and manufacturing operations. For example, Dangote Agro Sacks Limited’s foreign exchange offer was for spare parts for manufacturing and textile machinery.
It was previously reported Dangote Group recorded a double-digit decline in share prices in July, resulting in a loss of around N1.21 trillion in market value.
The market losses during the month had an impact on the net worth of the group’s President, Aliko Dangote.
The CBN held a retail Dutch auction on August 6, 2024, with the goal of distributing FX to end users, including those with trade-backed demands as part of its plan to stabilize the naira.
