Dangote Sugar Refinery has raised ₦486 billion ($356 million) through an oversubscribed rights issue as Nigeria’s largest sugar producer moves to strengthen its balance sheet, reduce debt and finance its long term expansion strategy. According to Business Post Nigeria and Business Insider Africa, the company issued 8.1 billion ordinary shares at ₦60 each, following shareholder approval of the capital raising plan earlier this year.
The fresh capital comes after three consecutive years of losses and is expected to provide greater financial capacity for Dangote Sugar’s integrated sugar projects. The company is targeting increased cultivation and processing of locally grown sugarcane, with a long term ambition of producing 1.5 million tonnes of refined sugar annually. Its existing Apapa refinery has an installed capacity of 1.44 million tonnes per year, while its backward integration projects span Adamawa, Taraba and Nasarawa.
The fundraising has broader implications for Nigeria’s food manufacturing and import substitution agenda. Nigeria remains heavily dependent on imported raw sugar, despite annual domestic demand estimated at about 1.7 million tonnes. Expanding local cultivation and processing could reduce exposure to international commodity prices and foreign exchange pressures while creating opportunities across agriculture, processing, logistics and industrial infrastructure. For investors, the rights issue also signals an effort to repair the company’s finances while funding a transition from port based refining towards a more integrated domestic supply chain.
Dangote Sugar’s next challenge will be converting the new capital into higher local production and improved financial performance. If its backward integration strategy succeeds, the company could strengthen its position in Nigeria’s sugar market while supporting the country’s broader ambition to reduce sugar imports and build a more self-sufficient agro-industrial sector.
