Dangote Sugar Shareholders Approve Historic Rights of N500bn…

●Applaud management performance, commitment to upstream integration

Dangote Sugar Refinery PLC has received shareholder approval for a $500 billion rights issue, enabling the company to strengthen its financial position, expand its capital base and accelerate strategic initiatives.

The rights issue, the shareholders argued, will help the Company in its ambitious backward integration plans.

The approval was given at the company’s 20th annual general meeting held in Lagos on Wednesday, where shareholders praised Dangote Sugar’s strong performance over the past year, underscoring their support for the organisation’s continued evolution and future plans.

Addressing shareholders, Dangote Sugar Chairman, Arnold Ekpe, noted that the year under review saw a marked improvement in performance, despite a challenging economic environment, stressing that revenue growth and EBITDA improvement demonstrate positive operational momentum. However, profitability was burdened by a foreign exchange loss of N46.7 billion and additional finance costs totaling N128.6 billion.

The Group, it said, recorded revenue of N829.2 billion, a 25% increase from 2024 adding that “loss for the year improved to N64.1 billion from N270.9 billion in the previous year, while EBITDA rose to N149.6 billion, up from N43.0 billion.”

Despite these obstacles, Ekpe assured shareholders that decisive actions are underway to increase operational efficiency and revenue growth. “With shareholder support on the rights issue, we are in a strong position to strengthen our balance sheet, laying the foundation for future growth and profitability,” he said.

The President highlighted the importance of the backward integration program themed “Sugar for Nigeria” as the cornerstone of the company’s strategic vision. “This initiative is expected to drive profitability and value creation, reduce import dependency, mitigate foreign exchange risks, generate employment and support local farmers through the out grower programme.

“Our target is to produce 1.5 million tonnes of sugar per year from domestically grown sugarcane. This involves the development of approximately 45,000 hectares, with 2.7 million tonnes of cane earmarked for Numan and 3.35 million tonnes for Nasarawa. Achieving this target requires substantial investment in land development and production capacity over the next five years,” Ekpe said.

Looking ahead, he affirmed the company’s commitment to sustainable growth, positive impact and increased profitability, saying that “we will continue to optimize our operations, pursue market expansion opportunities and increase our presence across the nation. In line with Dangote Group’s Vision 2030, we are dedicated to investing in our workforce and technology to consistently deliver exceptional products and customer satisfaction.”

Group managing director and CEO of Dangote Sugar, Thabo Mabe, added that Dangote Sugar remains the only producer of edible refined granulated white vitamin A fortified sugar, sourced from its backward integration site in Numan.

He said the company is working diligently to secure approximately $1.3 billion needed to fulfill its commitment to achieve a production target of at least 600,000 tonnes per annum by 2030. “We have revised our strategic development plan to achieve the 2030 targets, leveraging the combined potential of DSR Numan Operation and Nasarawa Sugar Company Limited estates. This integrated plan targets substantial sugarcane production of approximately 6.05 million of tons on 45,000 hectares from both sites.”

Speaking at the AGM, a shareholder, Mrs Bisi Bakare, commended the Dangote Sugar Refinery for having the largest sugarcane farming project in Nigeria, describing the project as a major boost to backward integration and the national economy. also praised the board of directors and management for guiding the company through the challenging operating operating environment.

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