MORE WORRIES FOR AFRICA'S RICHEST MAN AS FITCH RATINGS CAST DOUBT ON DANGOTE INDUSTRIES LIMITED

Aliko Dangote, Africa's richest man, faces new challenges as Fitch Ratings downgrades Dangote Industries Limited's (DIL) credit rating to B+ with a negative watch. The downgrade raises concerns about DIL's ability to manage its debt, particularly a sizable syndicated loan maturing on August 31, 2024.

Fitch cited DIL's weakened liquidity position and reduced ability to raise funds as reasons for the downgrade, even as Dangote industries limited plans to divest a 12.75% stake in Dangote Petroleum Refinery to address liquidity concerns and service the syndicated loan.

The syndicated loan, totaling billions of dollars, was secured from a consortium of international banks. Failure to repay the loan could lead to severe financial consequences for DIL and its subsidiaries.

The Fitch rating downgrade comes as Dangote Refinery, Africa's largest oil refinery, faces crude oil supply crises which has limited the refinery's operations as fuel shortages continued to affect the entire Nigerian economy.