Dangote Sugar secures shareholder approval for US$371.2M rights issue
Dangote Sugar gains shareholder backing for N500bn capital raise to fund expansion, boost local production, and support Nigeria’s sugar self-sufficiency agenda.
NIGERIA – Dangote Sugar Refinery Plc has secured shareholder approval for its proposed N500 billion (US$371.18M) capital raise through a rights issue, marking a significant step toward strengthening its expansion strategy and long-term sustainability.
The approval was granted during the company’s 20th Annual General Meeting, with the transaction still subject to regulatory clearance. Shareholders also authorised the board to determine the terms of underwriting for the offer, reinforcing confidence in the planned fundraising initiative.
The capital raise comes as the company seeks to reposition its operations amid evolving market conditions and increasing production ambitions.
Data presented at the meeting showed that the company currently has over 12 billion shares in issue, with a substantial portion held by Dangote Industries Limited, while Aliko Dangote retains a significant individual stake.
Despite macroeconomic challenges, the company reported improved financial performance for the 2025 financial year, significantly narrowing its losses compared to the previous year. It also recorded a strong increase in gross profit, reflecting enhanced operational efficiency.
Dangote Sugar’s core operations remain focused on refining and distributing granulated sugar to consumers and industrial users across Nigeria.
The company operates with an installed refining capacity of approximately 1.44 million metric tonnes annually and continues to explore opportunities to scale production.
A central pillar of its strategy is backward integration, aligned with national efforts to boost domestic sugar production and reduce reliance on imports. Under this approach, the company is investing in large-scale sugarcane cultivation and processing projects across multiple states.
Ongoing developments in Taraba, Adamawa, and Nasarawa states are aimed at expanding local production capacity and supporting Nigeria’s broader sugar self-sufficiency agenda.
The company is also working toward a long-term target of producing 1.5 million metric tonnes of sugar annually from locally sourced sugarcane.
In Adamawa State, Dangote Sugar is upgrading existing refinery infrastructure, including the installation of new turbines and high-pressure boilers to improve energy generation and processing efficiency.
Beyond sugar production, the company is exploring additional revenue streams through the conversion of by-products into ethanol and animal feed, enhancing operational efficiency and sustainability.
Dangote Sugar has also signalled regional growth ambitions, having established a subsidiary in Ghana as part of its strategy to expand its presence across African markets.
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