• Company seeks to raise 485.8 billion naira through share offering
• Funds to support expansion and reduce debt
• Strategy aims to boost local sugar production and cut imports

Dangote Sugar Refinery, Nigeria’s largest sugar refiner, plans to raise 485.8 billion naira (about $360 million) through a rights issue to strengthen its capital base and finance investments, the company said on April 21.

The offer, subject to approval by the Nigerian Exchange, will involve 8.09 billion new ordinary shares priced at 60 naira each. Shareholders on record as of April 20, 2026, will be entitled to two new shares for every three held.

The transaction is being arranged by Meristem Stockbrokers, Stanbic IBTC Stockbrokers, and Vetiva Securities.

The company said the proceeds will be used to reinforce equity, reduce debt, and fund investment projects, particularly under its plan to expand agricultural production and local sugar processing in Nigeria.

Dangote Sugar aims to reach 1.5 million tons of refined sugar output per year by scaling up its production and milling capacity. According to the U.S. Department of Agriculture, Nigeria has more than 800,000 hectares suitable for sugarcane cultivation, but only about 16% is currently in use.

By increasing domestic production, the group seeks to reduce reliance on imported raw sugar and limit exposure to foreign exchange pressures, which have contributed to recent financial losses.

Nigeria remains heavily dependent on imports to meet local demand. Data from the National Bureau of Statistics show that sugar imports reached about 915 billion naira in 2024.

The fundraising comes as the company shows signs of recovery. In 2025, net losses narrowed to 64.1 billion naira from 192.6 billion in 2024, while revenue rose 24.5% to 829.2 billion naira. Sales remain largely driven by 50 kg bagged sugar, which accounts for more than 97% of total revenue.

Sandrine Gaingne