Shareholders of Dangote Sugar Refinery Plc have approved a N500 billion Rights Issue to strengthen the company’s financial position, expand its capital base, and accelerate key strategic initiatives.
The shareholders noted that the Rights Issue would support the company’s ambitious backward integration projects aimed at boosting local production.
Approval was granted at the company’s 20th Annual General Meeting (AGM) held on Wednesday in Lagos, where shareholders also commended Dangote Sugar’s performance over the past year and expressed confidence in its growth trajectory.
Chairman of the company, Arnold Ekpe, told shareholders that despite a challenging economic environment, the company recorded significant operational improvements. He highlighted strong revenue growth and improved EBITDA, although profitability was impacted by foreign exchange losses of N46.7 billion and finance costs of N128.6 billion.
According to him, the Group posted a turnover of N829.2 billion, representing a 25 per cent increase over 2024. “Loss for the year narrowed to N64.1 billion from N270.9 billion in the prior year, while EBITDA rose to N149.6 billion from N43.0 billion,” he said.
Ekpe assured shareholders that management is taking decisive steps to improve efficiency and drive revenue growth. “With shareholder backing for the rights issue, we are well-positioned to strengthen our balance sheet and lay the foundation for future profitability,” he added.
He reaffirmed the importance of the company’s backward integration programme, themed “Sugar for Nigeria,” describing it as central to Dangote Sugar’s long-term strategy. The initiative, he said, is expected to enhance profitability, reduce import dependence, mitigate foreign exchange risks, create jobs, and support local farmers through the outgrower scheme.
“Our target is to produce 1.5 million metric tonnes of sugar annually from locally cultivated sugarcane. This will involve developing about 45,000 hectares, with 2.7 million tonnes of cane projected for Numan and 3.35 million tonnes for Nasarawa. Achieving this requires substantial investment in land development and production capacity over the next five years,” Ekpe stated.
Looking ahead, he reiterated the company’s commitment to sustainable growth and market expansion. “Aligned with the Dangote Group’s Vision 2030, we will continue to optimise operations, invest in our workforce and technology, and deliver quality products that meet customer expectations,” he said.
The Group Managing Director and CEO, Thabo Mabe, noted that Dangote Sugar remains the only producer of edible refined granulated white vitamin A-fortified sugar in Nigeria, sourced from its backward integration site in Numan.
He disclosed that the company is working to secure approximately $1.3 billion to meet its target of producing at least 600,000 tonnes annually by 2030. “We have updated our strategic development plan to achieve our 2030 goals, leveraging the combined capacity of our Numan operations and the Nasarawa Sugar Company Limited estates,” he said.
Mabe added that the integrated plan targets cane production of about 6.05 million tonnes across 45,000 hectares from both locations.
Also speaking at the AGM, a shareholder, Mrs. Bisi Bakare, praised the company for operating the largest sugarcane outgrower scheme in Nigeria, describing it as a major boost to backward integration and the domestic economy. She also commended the board and management for steering the company through a challenging business environment.
