Nigeria’s leading sugar producer Dangote Sugar Refinery plans to raise about 500 billion naira (US$310 million) through a rights issue, after shareholders approved the proposal at its annual general meeting.
The company said in a statement that the planned share sale to existing shareholders remains subject to approval by relevant regulators, while the final terms including pricing and timing will be determined by its board of directors.
Under the structure of the offer, any shares not taken up by existing investors may be reallocated to shareholders willing to purchase additional stock, in line with regulatory requirements.
The capital raising comes as the company seeks to strengthen its balance sheet following a period of elevated financing costs and significant debt exposure.
Dangote Sugar reported current liabilities of 791.8 billion naira (US$490 million) as of the end of 2025, slightly lower than the previous year. Financial liabilities accounted for the bulk of this figure, rising to 688.1 billion naira (US$425 million), driven largely by increased issuance of commercial paper.
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Despite these pressures, the company narrowed its net loss to 64.1 billion naira (US$40 million) in 2025, compared with a loss of 192.6 billion naira (US$120 million) a year earlier.
The improvement was supported by a reduction in finance costs, with net finance losses declining to 170.8 billion naira (US$105 million) from 293.7 billion naira (US$182 million) in the previous year.
The rights issue is expected to provide fresh capital to support operations, reduce debt burdens and fund expansion plans in Nigeria’s sugar industry.
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Analysts say the move reflects a broader trend among Nigerian corporates turning to equity markets to shore up finances amid high borrowing costs and currency pressures.
The company’s total assets stood at 965.9 billion naira (US$600 million) at the end of 2025, down from 1.1 trillion naira (US$680 million) a year earlier, reflecting declines in cash reserves and inventory levels.
Dangote Sugar Refinery, part of the wider Dangote Group, is a major player in Nigeria’s food and beverage sector and a key participant in the government’s drive to boost domestic sugar production and reduce imports.
The firm has been investing in backward integration projects aimed at developing local sugar plantations and refining capacity, though progress has been affected by macroeconomic challenges.
The company’s market capitalisation currently stands at about 826 billion naira (U$510 million) on the Nigerian Exchange.
Market participants will be watching closely for details of the rights issue, including pricing and subscription levels, as indicators of investor confidence in the company’s recovery prospects.
The planned fundraising underscores the growing role of equity financing in Nigeria’s corporate sector, as companies adapt to a challenging operating environment marked by inflation, exchange rate volatility and tight liquidity conditions.
