Dangote Sugar Secures N500bn Rights Issue Approval as Expansion Drive and Backward Integration Gather Pace
Dangote Sugar Refinery Plc has obtained shareholders’ consent for a substantial N500 billion Rights Issue, a move expected to significantly reinforce its capital base and provide fresh momentum for its long-term growth agenda, including key backward integration projects aimed at reducing import dependence.
The approval was granted at the company’s 20th Annual General Meeting held in Lagos, where shareholders also expressed confidence in the company’s performance trajectory and strategic direction. The meeting reflected broad support for Dangote Sugar’s ongoing transformation efforts and its renewed focus on operational resilience amid a challenging macroeconomic environment.
Speaking at the AGM, the Chairman of Dangote Sugar Refinery Plc, Arnold Ekpe, noted that the company recorded notable operational improvements during the review period, even as external pressures weighed on bottom-line profitability. He highlighted that stronger revenue performance and improved operational efficiency underscored the resilience of the business.
According to him, the company’s turnover rose to N829.2 billion, representing a 25 percent increase compared to the previous year. In addition, EBITDA surged to N149.6 billion from N43.0 billion, signaling improved earnings capacity at the operational level. However, overall profitability was significantly impacted by a foreign exchange loss of N46.7 billion alongside finance costs amounting to N128.6 billion.
Despite these headwinds, the company was able to narrow its net loss to N64.1 billion, a marked improvement from the N270.9 billion loss recorded in the preceding year. Ekpe attributed this progress to ongoing efficiency measures and strengthened revenue generation capacity across the business.
He assured shareholders that the approval of the Rights Issue places the company in a stronger position to reinforce its balance sheet and accelerate strategic investments. According to him, the capital injection will support efforts to improve productivity, enhance profitability, and position the company for sustained long-term value creation.
A key pillar of Dangote Sugar’s strategy remains its ambitious backward integration programme, branded “Sugar for Nigeria,” which aims to reduce reliance on imported sugar and build a more self-sufficient domestic production ecosystem.
Ekpe explained that the initiative is designed not only to boost profitability but also to mitigate foreign exchange exposure, create employment opportunities, and strengthen agricultural value chains through partnerships with local farmers under an out-grower scheme.
The company’s long-term target is to produce up to 1.5 million metric tonnes of sugar annually from locally cultivated sugarcane. This would involve the development of approximately 45,000 hectares of farmland, with projected output of 2.7 million tonnes of cane from Numan and 3.35 million tonnes from Nasarawa.
He further noted that achieving these targets will require substantial and sustained investment in land development, infrastructure, and production capacity over the next five years, underscoring the scale of the company’s industrial expansion ambitions.