By Ayomide Otitoju
Dangote Sugar Refinery Plc has obtained shareholder approval for a N500 billion Rights Issue, a move aimed at strengthening its financial position, expanding its capital base, and accelerating key strategic initiatives.
The approval was granted at the company’s 20th Annual General Meeting held in Lagos, where shareholders also expressed confidence in the firm’s performance and long-term growth plans. They noted that the capital raise would support Dangote Sugar’s ambitious backward integration projects.
Chairman of the company, Arnold Ekpe, said the firm recorded improved performance during the review period despite a challenging economic environment. He highlighted revenue growth and stronger EBITDA as indicators of operational progress, although profitability was impacted by a foreign exchange loss 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 year-on-year, while losses narrowed to N64.1 billion from N270.9 billion recorded in the previous year. EBITDA rose significantly to N149.6 billion from N43.0 billion.
Ekpe stated that the approved Rights Issue would enhance the company’s balance sheet and position it for improved growth and profitability, adding that ongoing measures are being implemented to boost efficiency and revenue generation.
He reaffirmed the importance of the company’s backward integration strategy, “Sugar for Nigeria,” describing it as central to reducing import dependence, mitigating foreign exchange risks, creating jobs, and supporting local farmers through its outgrower scheme.
The company targets an annual production of 1.5 million metric tonnes of sugar from locally cultivated sugarcane, with plans to develop about 45,000 hectares across its Numan and Nasarawa operations over the next five years.
Group Managing Director and Chief Executive Officer, Thabo Mabe, said the company remains the only producer of vitamin A-fortified refined granulated sugar in Nigeria, sourced from its Numan facility. He added that Dangote Sugar is working to secure about $1.3 billion to support its plan to achieve a minimum annual production of 600,000 tonnes by 2030.
Mabe noted that the revised strategic plan integrates operations in Numan and Nasarawa, targeting combined cane production of approximately 6.05 million tonnes across 45,000 hectares.
Shareholders at the meeting commended the company’s management for navigating a tough business environment. A shareholder, Bisi Bakare, praised the firm’s sugarcane outgrower scheme, describing it as the largest in Nigeria and a key driver of domestic economic growth.
