In a bid to criticize the economic policies under President Bola Tinubu's administration, Aliko Dangote, the Chairman of Dangote Industries Limited, lambasted the decision to float the naira, attributing it to the significant setbacks faced by his company and other businesses throughout 2023.
Addressing shareholders at the Annual General Meeting of Dangote Sugar Refinery Plc on Tuesday, Dangote highlighted the detrimental impact of the naira's floatation, which allowed market forces to determine its value against other currencies. He emphasized that numerous enterprises, particularly in the manufacturing sector, bore the brunt of operational losses due to the volatility in the naira's exchange rate vis-à-vis the US dollar.
"The biggest mess created was the devaluation of the naira from N460 to N1,400," Dangote stated, underlining the substantial strain inflicted on businesses by the drastic depreciation of the national currency.
Dangote's remarks come in the wake of substantial financial losses suffered by prominent Nigerian billionaires, including himself and Abdulsamad Rabiu, following the implementation of the naira floating policy. According to data from the Bloomberg Billionaire Index (BBI), both Dangote and Rabiu incurred staggering losses amounting to $5.85 billion, propelling them down the global wealth rankings.
The economic ramifications of the naira's floatation were further underscored by a Bloomberg report in April, which highlighted Nigeria's rapid depletion of foreign exchange reserves. This alarming trend raised concerns about the Central Bank of Nigeria's strategy to shore up the naira amidst its free fall against the dollar.
Responding to criticisms, Olayemi Cardoso, the Governor of the Central Bank of Nigeria, defended the shift in reserve dynamics, citing the necessity of meeting financial obligations and preserving the country's credibility in the international arena.
As businesses continue to grapple with the fallout from the naira floating policy, stakeholders are closely monitoring the government's response amid mounting economic challenges.
