Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a Rights Issue, a move aimed at strengthening its capital base and supporting future growth. The company disclosed the plan in a statement signed by its Company Secretary, Temitope Hassan, following the 20th Annual General Meeting held in Lagos. Shareholders have approved the initiative, which is subject to regulatory clearance.
The Rights Issue will involve the issuance of ordinary shares, with the board authorised to determine the terms, timing, and conditions. The company noted that the capital raise may be underwritten, depending on board and regulatory approval. Shares not taken up by existing shareholders could be offered to other investors. Any unallotted shares will be cancelled in accordance with legal requirements.
The development comes as Dangote Sugar reports a notable improvement in its financial performance. For the 2025 fiscal year, revenue grew by 24.56% to N829.2 billion, driven primarily by strong demand for 50kg sugar, which accounted for N807 billion of total sales. Retail sugar contributed N17.7 billion, while molasses and freight income added N4.02 billion and N66.4 million, respectively.
Cost of sales rose by 11.35% to N706.5 billion, largely due to raw material expenses of N573.3 billion, resulting in a gross profit of N122.6 billion. The company posted a pre-tax loss of N72.2 billion, an improvement from the N270.8 billion loss recorded in 2024. Regional sales data showed Lagos accounting for 55.82% of revenue, followed by the North at 35.35%, the West at 6.45%, and the East at 2.38%.
The Rights Issue is among the largest of its kind in Nigeria’s corporate history and is intended to enhance Dangote Sugar’s financial capacity to pursue long-term growth objectives. The board has been authorised to allot shares and manage fractional holdings in line with regulatory requirements.
