Shareholders of Dangote Sugar Refinery Plc have approved a N500bn Rights Issue aimed at strengthening the company’s capital base and accelerating its strategic expansion projects, particularly its backward integration programme.
The approval was given at the company’s 20th Annual General Meeting (AGM) held on Wednesday in Lagos, where investors also commended the management for its resilience and improved performance amid a challenging macroeconomic environment.
According to the shareholders, the capital raise would significantly support the company’s long-term growth plans and reduce reliance on imported raw materials through enhanced local production capacity.
Chairman of Dangote Sugar, Mr. Arnold Ekpe, told shareholders that the company recorded improved operational performance in the year under review despite prevailing economic headwinds, noting that strong revenue growth and improved EBITDA reflected underlying operational strength.
He, however, disclosed that profitability was impacted by significant foreign exchange losses and financing costs.
The company posted a foreign exchange loss of N46.7bn and finance expenses of N128.6bn during the period.
Ekpe said the group recorded a turnover of N829.2bn, representing a 25 per cent increase over the previous year, while EBITDA rose sharply to N149.6bn from N43.0bn. He added that the loss for the year improved to N64.1bn from N270.9bn recorded previously.
“Despite the challenges, we are taking decisive steps to strengthen operational efficiency and drive sustainable growth. With shareholders’ approval of the rights issue, we are better positioned to reinforce our balance sheet and support future profitability,” he said.
He further stressed that the company’s backward integration initiative, themed “Sugar for Nigeria,” remains central to its long-term strategy, aimed at reducing import dependence, conserving foreign exchange, boosting local production, and creating jobs through farmer out-grower schemes.
Ekpe noted that the programme targets annual production of 1.5 million metric tonnes of sugar from locally cultivated sugarcane, requiring the development of about 45,000 hectares of farmland. He explained that 2.7 million tonnes of cane are projected for Numan and 3.35 million tonnes for Nasarawa over the development cycle.
“This will require substantial investment in land development and production capacity over the next five years,” he added.
Looking ahead, Ekpe reaffirmed the company’s commitment to operational efficiency, market expansion, and investment in technology and human capital, in line with the Dangote Group’s Vision 2030.
“We will continue to optimise operations, expand market presence nationwide, and invest in our people and systems to deliver consistent value and customer satisfaction,” he said.
Group Managing Director and Chief Executive Officer of Dangote Sugar Refinery, Thabo Mabe, also told shareholders that the company remains Nigeria’s sole producer of edible refined granulated white vitamin A-fortified sugar, supported by its backward integration operations in Numan.
Mabe said the company was working to secure about $1.3bn required to achieve its production target of at least 600,000 tonnes annually by 2030.
He added that the firm had revised its strategic development plan to align with its 2030 goals, leveraging combined operations in Numan and the Nasarawa Sugar Company Limited estates.
The integrated plan, he said, targets about 6.05 million tonnes of sugarcane production across 45,000 hectares from both sites.
A shareholder, Mrs. Bisi Bakare, commended the company’s out-grower scheme, describing it as the largest in the country and a major boost to backward integration and the domestic economy.
She also praised the board and management for steering the company through prevailing economic challenges and sustaining investor confidence.
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