Morganable Economy File
According to the Bloomberg Billionaires Index, Dangote’s net worth is currently estimated at $35.1 billion. A one-third allocation would translate to approximately $11.7 billion, assuming his wealth remains at that level
kaNo —
Africa’s richest man, Aliko Dangote, is planning to donate one-third of his wealth to charitable causes as part of a long-term succession strategy, a move that could rank among the largest philanthropic commitments ever made by an African billionaire.
The development was disclosed by his daughter, Halima Dangote, in an interview with Bloomberg published on Tuesday.
Halima, who serves as a trustee of the Aliko Dangote Foundation, said the decision reflects her father’s deep commitment to philanthropy and his desire to institutionalise giving as part of the family’s legacy.
According to the Bloomberg Billionaires Index, Dangote’s net worth is currently estimated at $35.1 billion. A one-third allocation would translate to approximately $11.7 billion, assuming his wealth remains at that level.
Halima explained that the arrangement has already been formalised, with family members endorsing the decision as part of a broader succession plan.
“He sort of put all the structure in place whereby we focus a lot on health and education. He actually donated 25 per cent to the foundation. If you look at it, it is what we call in Sharia Code in Islam; it means he has donated 33 per cent of his whole inheritance to his foundation,” she said.
“That is how important it is to him because philanthropy needs to be in existence generation after generation. So giving back is part and parcel of what we do,” she said, noting that Dangote had secured the consent of his immediate family, including his daughters and mother, to implement the plan.
The planned donation builds on decades of philanthropic activity by the Aliko Dangote Foundation, which was established in 1994.
Over the years, the foundation has grown into one of Africa’s largest private charitable organisations, focusing on health, education, nutrition and humanitarian interventions.
Dangote Foundation Receives $1.25bn Funding
Halima revealed that the foundation was endowed with $1.25 billion about a decade ago and has since received an additional $700 million in funding
She noted that about 70 per cent of its spending is directed toward projects in Nigeria, while 20 per cent supports initiatives across Africa and the remaining 10 per cent is allocated to programmes in other parts of the world.
TIME Magazine Lists Dangote Among Influential Philanthropists
Dangote’s philanthropic efforts have also earned global recognition. Earlier this year, TIME magazine named him among the world’s most influential philanthropists in its inaugural TIME100 Philanthropy list.
The recognition highlighted the foundation’s annual spending of more than ₦50 billion on programmes across Africa.
While Dangote’s pledge falls short of the 50 per cent benchmark commonly associated with the Giving Pledge initiative embraced by several Western billionaires, analysts say it remains one of the most significant charitable commitments from the African continent.
Experts note that large-scale philanthropy in Africa has historically lagged behind that of developed economies, largely due to differences in wealth accumulation patterns and institutional frameworks.
Banks’ Growing Risk Aversion Tightening Credit Conditions
Meanwhile, the announcement comes against the backdrop of broader economic challenges facing businesses in Nigeria, particularly in accessing affordable financing.
While some argue that reducing interest rates should be prioritised, others say the more pressing issue is the availability of credit when needed.
The debate has intensified as the Central Bank of Nigeria maintains a tight monetary policy stance aimed at curbing inflation.
As a result, lending rates for many small and medium-sized enterprises (SMEs) now exceed 28 per cent, with some businesses reporting rates as high as 35 per cent.
“It is easier to access loans these days, but at what cost? If you ask someone to borrow at 35 per cent, they must do a business that will return at least 40 to 45 per cent at the end of the financial year,” said Lagos-based entrepreneur Blessing Isizuwa.
Data released by the Central Bank shows varying lending rates across major financial institutions.
Guaranty Trust Bank reported a prime lending rate of 21.0 per cent and a maximum rate of 32.0 per cent, while Zenith Bank posted a prime rate of 23.62 per cent and a similar maximum rate.
Access Bank has a prime lending rate of 25.5 per cent, with a maximum rate of 32 per cent, while First Bank of Nigeria offers a prime rate of 26 per cent and a maximum of 38 per cent.
Ecobank recorded one of the highest maximum lending rates at 48.0 per cent, alongside a prime rate of 26.75 per cent.
Similarly, United Bank for Africa reported a prime lending rate of 28.5 per cent and a maximum of 32.0 per cent.
Industry stakeholders say that beyond high interest rates, stringent collateral requirements have made it difficult for many businesses particularly those in agriculture and other high-risk sectors to access formal financing.
According to Ibrahim Maigari Ahmadu, chief executive of Rice Afrika, lenders tend to favour established corporates while imposing conditions that exclude smaller enterprises.
“The collateral threshold and pricing structure effectively exclude many viable businesses from formal finance,” he said.
Findings from the World Bank 2025 Enterprise Survey highlight the scale of the challenge.
While 94.8 per cent of micro, small and medium enterprises (MSMEs) in Nigeria have bank accounts, only 20.2 per cent have access to bank loans.
The report also shows that more than 42 per cent of businesses are partially credit-constrained, with just 1.5 per cent of investments financed through bank loans.
Most firms rely on retained earnings, personal savings or informal funding sources to sustain operations.
Analysts argue that the financing gap is structural. Although fintech companies have expanded digital access to credit, their interest rates are often comparable to those of traditional banks, limiting their effectiveness in providing affordable working capital.
Development finance institutions such as the Bank of Industry continue to offer subsidised loans, but limited funding capacity has constrained their ability to meet the growing demand from businesses.
