Dangote Sugar Refinery Plc has unveiled plans to raise up to ₦500 billion through a Rights Issue, in what is set to rank among the largest capital-raising exercises in Nigeria’s corporate landscape.
The proposed fundraising initiative, which is subject to regulatory approvals, received shareholder backing at the company’s 20th Annual General Meeting held in Lagos. Details of the resolution were communicated in an official statement signed by Company Secretary Temitope Hassan.
According to the company, the capital raise will be executed through the issuance of ordinary shares to existing shareholders, with the Board of Directors granted authority to determine the timing, structure, and terms of the offer. The move is aimed at strengthening the firm’s capital base and positioning it for sustained long-term growth.
Dangote Sugar noted that the Rights Issue may be underwritten, depending on approvals from both the Board and relevant regulators. It also indicated that any shares not subscribed to by existing shareholders could be made available to other interested investors, broadening participation in the offer.
The planned capital injection comes against the backdrop of improving financial performance. In its audited 2025 results, the company recorded a 24.56 percent increase in revenue, rising to ₦829.2 billion. The growth was largely driven by strong demand for its 50kg sugar product, which contributed ₦807 billion to total earnings.
Additional revenue streams included ₦17.7 billion from retail sugar sales, ₦4.02 billion from molasses, and ₦66.4 million from freight operations. Despite the revenue growth, cost pressures persisted, with cost of sales increasing by 11.35 percent to ₦706.5 billion, largely due to raw material expenses estimated at ₦573.3 billion.
This resulted in a gross profit of ₦122.6 billion, while pre-tax losses narrowed significantly to ₦72.2 billion, compared to ₦270.8 billion recorded in 2024—reflecting a notable improvement in the company’s financial position.
Geographically, sales remained heavily concentrated in Lagos, which accounted for 55.82 percent of total revenue. Northern Nigeria followed with 35.35 percent, while the western and eastern regions contributed 6.45 percent and 2.38 percent respectively.
As part of the Rights Issue process, the company confirmed plans to increase its share capital to accommodate the new shares. The Board has also been empowered to manage fractional share allocations in compliance with regulatory standards, with any unsubscribed shares to be cancelled in accordance with applicable laws.
The capital raise underscores Dangote Sugar’s strategy to reinforce its financial capacity while navigating cost challenges and pursuing expansion opportunities in Nigeria’s competitive sugar market.
