Dangote Sugar Refinery Plc has obtained shareholder approval to raise N500 billion through a Rights Issue, a move designed to strengthen its financial base, support strategic initiatives, and advance its backward integration program. The approval was granted during the company’s 20th Annual General Meeting held in Lagos, where shareholders expressed confidence in the company’s performance and future direction.
Chairman Arnold Ekpe highlighted the company’s progress despite economic headwinds. He noted that revenue grew significantly, with turnover reaching N829.2 billion in 2025, a 25 percent increase compared to 2024. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose to N149.6 billion, up from N43 billion in the prior year. Losses also narrowed, improving to N64.1 billion from N270.9 billion in 2024. However, profitability was affected by foreign exchange losses of N46.7 billion and finance costs totaling N128.6 billion.
Ekpe assured shareholders that the Rights Issue would provide the company with the resources needed to enhance operational efficiency and drive revenue growth. He emphasized the importance of the backward integration program, “Sugar for Nigeria,” which aims to reduce import dependence, mitigate foreign exchange risks, and create jobs. The initiative also seeks to empower local farmers through an out-grower scheme.
The company’s long-term goal is to produce 1.5 million metric tonnes of sugar annually from locally cultivated sugarcane. To achieve this, Dangote Sugar plans to develop approximately 45,000 hectares of farmland. Production targets include 2.7 million tonnes of cane in Numan and 3.35 million tonnes in Nasarawa. Ekpe explained that reaching these milestones will require substantial investment in land development and production capacity over the next five years.
Shareholders welcomed the strategy, commending management for steering the company through a challenging environment while maintaining growth momentum. The Rights Issue is expected to reinforce Dangote Sugar’s balance sheet, positioning it for sustainable profitability and long-term value creation.
This development underscores the company’s commitment to building a resilient agricultural base for Nigeria, reducing reliance on imports, and contributing to national food security. With shareholder backing, Dangote Sugar is set to accelerate its transformation into a leading player in the domestic sugar industry.
