Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a Rights Issue, pending regulatory approval, in a major capital mobilisation effort aimed at strengthening its balance sheet and funding long-term expansion.
The proposal was disclosed in a statement signed by the Company Secretary, Mrs. Temitope Hassan, following the company’s 20th Annual General Meeting held in Lagos. Shareholders reportedly approved the capital raise plan, authorising the Board to proceed with the issuance of new ordinary shares under defined terms.
According to the company, the Rights Issue will enable existing shareholders to purchase additional shares proportionate to their holdings.
The Board has also been empowered to determine pricing, timing, and structure, subject to approvals from relevant regulatory authorities.
The company added that the offer may be underwritten depending on market conditions, while any unsubscribed shares could be allocated to other investors or cancelled in line with regulatory provisions.
The management said the initiative is aimed at reinforcing financial stability and supporting expansion across key operational segments. The move is also expected to enhance production capacity and improve efficiency within Nigeria’s competitive sugar industry.
The planned capital raise comes as Dangote Sugar continues to show mixed but improving financial performance.
In its 2025 audited results, revenue rose by 24.56 per cent to N829.2 billion, driven largely by strong demand for 50kg sugar, which accounted for over N807 billion of total earnings. Additional contributions came from retail sugar, molasses, and freight services.
However, rising production costs — particularly raw material expenses — pushed cost of sales to N706.5 billion. Despite this, the company posted a gross profit of N122.6 billion and significantly reduced its pre-tax loss to N72.2 billion, compared to N270.8 billion in the previous year.
