Dangote Group’s subsidiaries have emerged as major recipients in the latest Retail Dutch Auction conducted by the Central Bank of Nigeria (CBN), purchasing at least $105.33 million in successful foreign exchange (FX) bids.
This allocation represents about 13% of the $876.26 million that the CBN distributed among qualified banks.
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.
Among the firms owned by Africa’s richest man, Aliko Dangote, Dangote Sugar Refinery led with $87.42 million FX bids. Dangote Sugar Refinery received significant allocations for the importation of Brazilian cane raw sugar. For example, one transaction involved the import of 16,000 metric tons of raw sugar, with a single bid amounting to $10.96 million.
Dangote Cement PLC, a dominant force in Africa’s cement industry, had a successful bid amount of $9.03 million. Several smaller allocations were directed toward the procurement of spare parts for cement plant machinery, particularly by Dangote Cement PLC.
The Dangote Oil & Gas Company Limited received $5.33 million from CBN’s auction. Dangote Oil & Gas Company Limited received substantial FX for the purchase of gasoil and low-pour fuel oil (LPFO), essential for energy production and industrial operations. The largest single bid in this firm amounted to $2.5 million for the purchase of 15,000 metric tons of gasoil.
Dangote Industries Limited was allocated $2.5 million, while Dangote Agro Sacks Limited received $941,600.96. The $2.5 million secured by Dangote Industries Limited was for the importation of a set of gas turbines.
Smaller allocations were made to Dangote Sinotruk West Africa Limited and Dangote Coal Mines Ltd, with $7,161.50 and $104,568.68 respectively.
A significant portion of the foreign exchange allocated to Dangote’s firms was for importing spare parts for various manufacturing and industrial processes.
Credit: Nairametrics
