Dangote Group’s subsidiaries have emerged as major beneficiaries of the latest Retail Dutch Auction carried out by the Central Bank of Nigeria (CBN), obtaining a total of $105.33 million in foreign exchange (FX) bids. This allocation accounts for about 13% of the $876.26 million disbursed among qualified banks.
Zenith Bank, Access Bank, Providus Bank Union, and Sterling Bank were the principal financial institutions coordinating the FX allocation for Dangote’s companies. Notably, four of these banks were in the top ten receiving the most FX from CBN’s auction.
The funds allocated will help import necessary raw materials, spare parts and equipment required to ensure operational efficiency within Dangote’s diverse industrial empire. The largest amount went to Dangote Sugar Refinery which secured $87.42 million FX bids mainly aimed at importing Brazilian cane raw sugar. Dangote Cement PLC secured $9.03 million for cement plant machinery and spare parts while Dangote Oil & Gas Company Limited received $5.33 million dollar for gasoil and low-pour fuel oil procurement.
The Dangote Group was allocated $2.5 million for gas turbines importation, and Dangote Agro Sacks Limited received $941,600.96 for textile machinery and manufacturing equipment spare parts. The Dangote Sinotruk West Africa Limited and the Dangote Coal Mines Ltd received $7,161.50 and $104,568.68 respectively.
This turn of events comes on the heels of recent market volatility affecting Dangote Group’s listed subsidiaries, which has resulted in a notable decline in their market capitalization.
