Aliko Dangote’s Trillion Naira Worth of Nigerian Stocks: Impetus to Your Own Wealth?

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Brands could be built, ideas could be birthed in a little way to become institutions but it is the structure and operations of the capital market that in actual fact, create wealth to the last elastic limit of the entrepreneur. In a nutshell, the capital market is that system which caps efforts of business owners and compensate entrepreneurial adventures. Do you often wonder the whereabouts of great business across the African continent? I mean businesses that were doing well in days of yore. Do you often wonder why great businesses do die with their owners? The simple connection is the stock market.

You might not so much be ideas’ bank or a passionate business starter and owner, so long as you desire to be wealthy, all you need do is queue behind major business owners in the structures and systems they have built and nurtured over the years called stocks or shares of quoted companies.

Looking for wealth without stress in our land? There is really no need to make frantic search. It is a public knowledge and in the mouth of virtually everyone, who the richest man in Africa and in effect, Nigeria is. Queuing behind Alhaji Aliko Dangote might not make you wealth at same level with him, but you will sure be better financially than an average Nigerian.

Businesses are very difficult to build in Africa where infrastructures are lacking and where governance is near zero. If an individual has been able to build under such harsh climate to the extent that he can compete globally, investing in such would not amount to encouragement to the builder but an expression of wisdom. Investing in the Dangote dynasty can only create wealth for you in the sense that as Alhaji Aliko Dangote retains his position as Africa’s wealthiest personality by the growth of his enterprise, it is only a matter of wisdom; you too should grow beyond your current wealth level. Let’s how Alhaji Dangote emerged the wealthiest man in Africa.

DANGOTE CEMENT PLC:

As at Friday October 26, 2018, Alhaji Aliko Dangote is worth an estimated N3.056 trillion in Dangote Cement Plc alone being an owner of over 80% stake of the company. It should be recalled that 1.4% stake was sold to Investment Corporation of Dubai few years back in a deal worth $300million.

Since Dangote separated each of his manufacturing divisions into publicly traded companies on the floor of the Nigerian Stock Exchange, when he sneezes, the Nigerian Stock Market catches a cold. And it is understandable. Dangote Cement alone, as a company on the Nigerian stock exchange has a market value in excess of N3.4trillion, accounting for a quarter of the Nigerian Stock Market’s total capitalization

Dangote Cement is a subsidiary of Dangote Industries, which was founded by Aliko Dangote in 1981 as a trading business with an initial focus on importation of bagged cement and other commodities such as rice, sugar, flour, salt and fish.

Over time, the Group began to import bulk cement into the Apapa and Port Harcourt terminals, which it then bagged for distribution. Through the 1990s, the Group made a strategic decision to transition from a trading based business into a fully-fledged integrated manufacturing operation. This is where our ambitious plan to become Africa’s leading Cement producer began.

Dangote Cement Plc (“the Company”) was incorporated in Nigeria as a public limited liability company on 4th November, 1992 and commenced operations in January 2007 under the name Obajana Cement Plc. The name was changed on 14th July 2010 to Dangote Cement Plc. Its parent company is Dangote Industries Limited and its ultimate controlling party is Alhaji Aliko Dangote with over 97% controlling interest. Dangote Cement is Africa’s leading cement producer with operations in more than10 African countries, revenues in excess of N800billion billion and 24,000 employees.
The company is a fully integrated quarry-to-customer producer with production capacity of up to 45.6 million tonnes per annum (Mta) across Africa.
The company which was listed under the industrial goods subsector of the Nigerian stock exchange has about 17billion total outstanding numbers of shares with over N3.4trillion market capitalization, making Dangote Cement the most capitalized stock on the Nigerian Exchange.

DANGOTE FLOUR MILLS PLC:

Alhaji Aliko Dangote, via the ownership of 75% stake of Dangote Flour Mills Plc is worth an estimated N27.56billion Naira as at Friday October 26, 2018. It should be recalled that the Dangote Group sold over 65% of their stake in the company to Tiger Brands in 2012 thereby retaining minority position for upwards three years till 2015. Shelving insinuations and stories aside, the company was back under the ownership of Dangote group in 2015 and in about one and half years, it returned back in profit from a loss position when under the management of Tiger Brands.

Flour milling is one out of all the other product categories that commands wide spread patronage across all the zones of the country. Among the leading competitors in the industry, Dangote Flour Mills Plc’ Flour milling appears to be one of the few agro-based industries, which had withstood the harsh Nigerian economic environment.

Dangote Flour Mills Plc commenced operations in 1999, as a division of Dangote Industries Limited – one of Nigeria’s largest and fastest growing conglomerates. Following the strategic decision of Dangote Industries Limited to unbundle its various operators, Dangote Flour Mills Plc was incorporated in 2003. The rethinking was completed in January 2006 when the Federal High Court sanctioned a scheme of arrangement wherein all the assets, liabilities and undertakings of the erstwhile flour division of Dangote Industries was transferred to Dangote Flour Mills Plc. From an installed capacity of 500 metric tonnes per day, at its Apapa mill, the company has expanded rapidly by opening in quick successions, three flour mills in Kano, Calabar and Ilorin

The Lagos Apapa Mill was commissioned in September 1999, while the Kano Mill in June 2001. The Calabar Flour Mill was commissioned in July 2002. They have the combined production capacity of 1,000,000MT per annum. In order to meet customer demand, the company embarked on the ongoing expansion programme in Kano to make 1,500MT per day, while the newly commissioned Flour Mill in Ilorin will enhance flour production capacity by 500MT per day.

The company currently has five billion outstanding shares with about N36.75billion Market capitalisation.

Dangote Flour has two fully owned subsidiaries, Dangote Agro Sacks Limited and Dangote Pasta Limited.

DANGOTE SUGAR REFINERY PLC:

Dangote Sugar was listed on the floor of the Nigerian Stock Exchange in 2006 with just 30% ownership being relinquished to Nigerians during the company’s primary market activity while Alhaji Aliko Dangote retains 70% stake in the company. On the assumption that status of the company’s shareholding structure remains intact, as at Friday October 26, 2018, Alhaji Aliko Dangote in Dangote Sugar is worth N130.5billion.

Dangote Sugar Refinery Plc is a highly revered brand in the sugar refining sector of the Nigerian Food and Beverage Industry. Started in the 1970s with the import and sale of sugar by its parent company, Dangote Industries Limited.

Today, Dangote Sugar has made a remarkable impact on the Nigerian sugar sector. Its sugar refining facility at Apapa is the largest in Sub-Saharan Africa, with 1.44MT per annum installed capacity. The company’s core competences include:

  • Refining of raw sugar to make high quality Vitamin A fortifiedand non-fortified granulated white sugar
  • Marketing and distributionof  refined sugar grades in 50kg, 1kg, 500g & 250g packages
  • Cultivation and milling of sugarcane to finished sugar from its subsidiary, Savannah Sugar Company Limited.
  • Development of greenfield projects in line with our strategy, “Sugar for Nigeria,” Nigeria’s National Sugar Master Plan

The company has about 12billion total outstanding numbers of shares with over N175 billion market capitalization as listed on the floor of the Nigerian stock exchange.

NASCON ALLIED INDUSTRIES PLC:

National Salt started operations in 1973 as a joint venture between the Federal Military Government of Nigeria and Atlantic Salt & Chemical Inc. of Los Angeles, California, USA, due to an identified need for self-sufficiency in the production of this essential commodity. The status of the company however was enhanced in 2007 when the Dangote Group became majority holder of 62% equity in the organisation. It was subsequently listed on the floor of the Nigerian Stock Exchange at N22 per share. Today, Alhaji Aliko Dangote, his group and brother own over 65% of the company’s equities. By estimation, As at Friday October 26, 2018, Alhaji Aliko Dangote is worth about N33.4billion in the company.

With the acquisition of controlling shares by Dangote Group, the average daily production increased to 600,000 metric tons per annum, with the inclusion of three refineries in Apapa, Oregun and Port Harcourt.

In view of the foregoing, Alhaji Dangote in today’s Nigeria equities’ market is worth an estimated N3.244Trillion or $9billion. This, compared with Nigerian equities’ market capitalisation of N12.013Trillion as at Friday October 26 2018, Alhaji Aliko Dangote holds at least 27% of the Nigerian market. Queuing behind him in these he had created and others he will yet create might just be that needed impetus to your own wealth.

 

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