Dangote Sugar to raise US$330M via rights issue to fund expansion and strengthen balance sheet
Dangote Sugar plans a $330 million rights issue to reduce debt, fund expansion and boost local sugar production under Nigeria’s backward integration strategy.
NIGERIA – Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion (US$330 million) through a rights issue as it seeks to strengthen its balance sheet and finance expansion projects aimed at boosting local production.
The Lagos-based sugar producer said its board has approved the capital raise through the issuance of ordinary shares, subject to regulatory approvals.
The offer will be structured as a rights issue, allowing existing shareholders to subscribe in proportion to their current holdings.
The company described the move as an “equitable and cost-effective” approach to improving its financial position while enabling shareholders to maintain their ownership stakes.
“The proceeds of the rights issue are intended to be applied towards deleveraging the company’s financial position, strengthening the company’s capital base, and funding identified strategic and operational initiatives, including the backward integration projects,” the company said in a filing on the Nigerian Exchange.
The planned capital raise follows signs of financial stabilisation after two challenging years linked to the naira’s devaluation. Dangote Sugar reported a pre-tax loss of N72.3 billion (US$47.7 million) in 2025, improving from N270.9 billion (US$178.8 million) recorded in 2024.
Net loss also narrowed to N64.1 billion (US$42.3 million) from N192.6 billion (US$127.1 million) a year earlier, according to audited financial statements.
Revenue increased to N665.6 billion (US$439.3 million) in 2025, up from N441.5 billion (US$291.4 million) in 2024, supported by price adjustments and improved sales volumes.
Finance costs remained elevated at N110.3 billion (US$72.8 million) in 2025, although this represented a decline from N210.5 billion (US$139 million) in 2024, reflecting reduced foreign exchange losses and moderating borrowing costs.
Operationally, the company continues to advance its Backward Integration Project, which aims to increase domestic sugarcane production and reduce reliance on imports.
The strategy aligns with Nigeria’s sugar master plan and is designed to limit exposure to currency volatility by reducing dependence on dollar-denominated inputs.
Dangote Sugar is upgrading its refinery in Numan while also developing new greenfield projects in Nasarawa and Taraba states. The long-term plan targets the production of 1.5 million metric tonnes of locally produced sugar annually.
The company added that by-products from the expansion, including ethanol and animal feed, are expected to support additional revenue streams as the projects progress.
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