Pecohub Shareholders of Dangote Sugar Refinery Plc have approved a proposed N500 billion capital raise through a rights issue, in a move aimed at strengthening the company’s expansion drive and long-term sustainability.
The approval was granted at the company’s 20th Annual General Meeting held in Lagos on April 15, with the exercise still subject to clearance from relevant regulatory authorities.
As part of the resolutions reached, shareholders also authorised the company’s board to determine the terms of underwriting for the offer, reinforcing confidence in the planned fundraising initiative.
The development comes as the company seeks to reposition its operations amid evolving market conditions and rising production ambitions.
Data presented at the meeting showed that the firm currently has over 12 billion shares in issue, with a significant portion held by Dangote Industries Limited, while billionaire industrialist Aliko Dangote retains a notable individual stake.
Despite macroeconomic pressures, the company reported a marked improvement in its financial performance for the 2025 financial year, narrowing its losses significantly compared to the previous year.
At the same time, it recorded a strong increase in gross profit, signalling improved operational efficiency.
Dangote Sugar’s core business remains the refining and distribution of granulated sugar to both individual consumers and industrial users across Nigeria.
With an installed refining capacity of about 1.44 million metric tonnes annually, the company continues to explore avenues for scaling production.
A key focus area remains its backward integration strategy, which is aligned with national efforts to boost local sugar production and reduce dependence on imports.
Under this framework, the company is investing heavily in large-scale sugarcane cultivation and processing projects across multiple states.
Ongoing projects include developments in Taraba, Adamawa, and Nasarawa, where resources are being deployed to expand domestic production capacity and support the broader goals of Nigeria’s sugar self-sufficiency agenda.
The company is also advancing a long-term target to produce 1.5 million metric tonnes of sugar annually from locally sourced sugarcane, a plan tied to the Federal Government’s broader industry roadmap.
In Adamawa State, efforts are underway to upgrade existing refinery infrastructure, with expectations that the project will enhance energy generation capacity through new turbine installations and high-pressure boilers.
The upgrade is also projected to improve overall processing output.
Beyond sugar production, Dangote Sugar is exploring additional revenue streams through the conversion of by-products into ethanol and animal feed, a move expected to improve efficiency while contributing to environmental sustainability.
The company has also signalled its regional growth ambitions, having established a subsidiary in Ghana as part of its strategy to expand its footprint across the African market.
With the planned capital raise, industry watchers say the company is positioning itself to deepen local production, improve operational resilience, and take advantage of emerging opportunities within the agro-industrial sector.
