Dangote Sugar Refinery Plc has announced plans to raise up to ₦500 billion through a Rights Issue, subject to regulatory approvals, as part of efforts to strengthen its capital base and support future growth.
The development was disclosed in a statement signed by the company’s Secretary, Temitope Hassan, following the company’s 20th Annual General Meeting held in Lagos.
According to the company, shareholders approved the plan to raise fresh capital through the issuance of ordinary shares to existing investors.
“The Directors of the Company be and are hereby authorised to raise capital of up to ₦500 billion by way of Rights Issue through the issuance of ordinary shares, on such terms and conditions and at such time as the Directors may deem fit,” the statement said.
The company noted that the Rights Issue may be underwritten depending on terms approved by the board and regulatory authorities. It also stated that any shares not taken up by existing shareholders could be offered to other interested investors.
The initiative is aimed at strengthening the company’s financial capacity to support its long-term growth strategy and expand operations across key markets.
The planned capital raise comes as Dangote Sugar recorded improved financial performance in its 2025 audited results.
The company reported revenue growth of 24.56 percent to ₦829.2 billion, largely driven by strong demand for 50kg sugar, which generated ₦807 billion in sales.
Retail sugar sales contributed ₦17.7 billion, while molasses and freight income added ₦4.02 billion and ₦66.4 million respectively.
Cost of sales rose by 11.35 percent to ₦706.5 billion, mainly due to raw material costs of ₦573.3 billion, resulting in a gross profit of ₦122.6 billion.
Despite the increase in revenue, the company reported a pre-tax loss of ₦72.2 billion. However, this represented a significant improvement from the ₦270.8 billion loss recorded in 2024.
Regional sales data showed that Lagos accounted for 55.82 percent of total sales, followed by the Northern region with 35.35 percent. The West recorded 6.45 percent, while the East contributed 2.38 percent.
Dangote Sugar also said its share capital would be increased to accommodate the new shares to be issued under the Rights Issue. The board has been authorised to allot the shares and manage fractional holdings in line with regulatory requirements.
Any shares left unallotted after the exercise will be cancelled in accordance with applicable laws.
The company noted that the planned capital raise ranks among the largest Rights Issues in Nigeria’s corporate history and reflects its ambition to consolidate its position within the sugar industry.
The move follows recent leadership changes at the company.
Former Group Managing Director and Chief Executive Officer, Ravindra Singhvi, resigned effective November 30, 2025. Subsequently, Thabo Mabe was appointed Group Managing Director and CEO-designate from December 1, 2025.
Mabe brings more than two decades of experience across international markets, including South Africa, Germany, and Nigeria.
The planned Rights Issue signals the company’s strategy to strengthen its balance sheet while positioning for sustained growth under its new leadership.
