A Glimpse at the New Leader: Arnold Ekpe's Illustrious Career
Born in August 1953 in Nigeria, Mr. Arnold Ekpe brings over 30 years of experience in the banking and corporate sectors, marked by leadership roles across several prominent institutions. His academic journey began at King’s College, Lagos, where he graduated in 1972. He then pursued his tertiary education abroad, earning a First Class Honours degree in Engineering from the University of Manchester (1973–1976) as a Shell Scholar, followed by an MBA from Manchester Business School (1977–1979).
Mr. Ekpe's professional career kicked off in 1977 with Schlumberger SA as a Wireline Logging Engineer. In 1979, he moved to Alcan Aluminium Nigeria as Executive Assistant to the CEO, focusing on purchasing and labor relations. His foray into the banking industry began in the early 1980s at International Merchant Bank (an affiliate of First Chicago), where he served as Head of Strategy. He later rose to Operations Manager and then General Manager of IMB Securities, the bank’s investment banking and stockbroking arm, from 1980 to 1986.
His career trajectory continued upwards as he served as General Manager and Head of Corporate Finance at City Securities Limited, a subsidiary of First City Monument Bank, from 1986 to 1987. Subsequently, he was General Manager of Nigeria International Bank (Citibank Nigeria) from 1987 to 1990. Perhaps his most prominent role was as Group CEO of Ecobank Transnational Incorporated, a position he held until his retirement in 2012. Before his latest appointment, Mr. Ekpe had been serving as an Independent Non-Executive Director at Dangote Sugar Refinery since 2024.
Navigating Financial Headwinds: Challenges and Opportunities for Dangote Sugar
Dangote Sugar Refinery Plc's latest unaudited financial results for the first quarter of 2025 reveal a mixed bag of performance. While the company recorded a record revenue of N213.93 billion, marking a substantial 74.31% year-on-year increase, profitability remains under pressure. The primary culprit has been the persistently elevated raw material costs, which absorbed an astounding 95.67% of revenue in Q1 2025. This left minimal room to cover operating, interest, and other expenses, leading to a pre-tax loss of N22.63 billion.
Despite this loss, there's a glimmer of improvement. The Q1 2025 loss represents a significant 78.82% reduction compared to the N106.86 billion loss reported in Q1 2024, largely supported by lower net finance costs.
On the balance sheet front, Dangote Sugar’s total assets stood at N1.045 trillion at the end of Q1 2025, showing a negligible 0.52% decline from December 2024. However, the company's balance sheet remains heavily leveraged, with liabilities accounting for over 81% of total assets. A substantial portion of this leverage is due to borrowings, which surged to N727.29 billion from N481.78 billion in Q1 2024, a 50.98% year-on-year increase.
A Brighter Horizon: Easing Macroeconomic Pressures
Despite the financial challenges, the macroeconomic landscape appears to be shifting in favor of consumer goods companies in Nigeria. The first half of 2025 has seen a significant easing of macroeconomic pressures, particularly foreign exchange (FX) volatility.
A recent report by Nairametrics highlighted a sharp drop in net FX losses among leading Nigerian firms, plunging by an impressive 98% year-on-year from N1.17 trillion in Q1 2024 to just N22.2 billion in Q1 2025. This analysis included 10 companies, with six operating within the consumer goods sector, including Dangote Sugar. With FX-related finance costs now significantly lower, any further efforts to reduce the cost of sales are poised to have a more meaningful impact on profitability.
Adding to these favorable developments, another Nairametrics report indicates that falling global sugar prices are also contributing to improved margins for some Nigerian businesses. Recent data shows a substantial decline in sugar prices, primarily driven by favorable weather conditions in Brazil, a key global exporter. This trend is particularly beneficial for Nigerian companies, given that approximately 96% of the country’s raw sugar imports originate from Brazil. These imports are then processed locally in Nigeria’s three major sugar refineries, operated by BUA, Golden Penny, and Dangote.
Mr. Ekpe steps into his new role at a pivotal time, with the company facing both the lingering effects of high operational costs and the tailwinds of an improving macroeconomic environment. His extensive financial background and leadership experience will be crucial in navigating these dynamics and steering Dangote Sugar Refinery towards sustained profitability.