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LAGOS — Dangote Sugar Refinery Plc has officially opened a massive N485.9 billion Rights Issue, taking a significant step to restructure its balance sheet and accelerate its aggressive expansion and backward integration targets.
The capital raise, which represents the bulk of the company’s approved N500 billion ceiling, offers 8,097,918,827 new ordinary shares at N60 per share. The offering is structured on a ratio of two new ordinary shares for every three existing shares held by qualifying shareholders as of the close of business on April 20, 2026.
According to the agro-industrial giant, the injection of capital is earmarked for critical corporate objectives. A primary focus is funding the ambitious “Sugar for Nigeria” initiative, which aims to achieve a domestic production target of 1.5 million metric tonnes annually. Furthermore, the funds will be utilized to reduce the heavy finance costs and foreign exchange exposures that have weighed on the company’s recent fiscal performance.
The capital will also be deployed toward vital infrastructure boosts, including the upgrading of existing refining facilities and the development of new greenfield sites.
Dangote Sugar Refinery, a subsidiary of Dangote Industries Limited, currently operates the largest sugar refinery in Sub-Saharan Africa, boasting a combined installed refining capacity of 1.49 million metric tonnes per annum. Through its strategic backward integration policy, the company is actively advancing plans to produce an additional 1.5 million metric tonnes of locally sourced sugar, a move that will cement its status as a premier integrated sugar producer on the global stage.
Management noted that the Rights Issue, which is scheduled to close on June 24, will significantly reduce the company’s leverage position, improve overall liquidity, and enhance its capital structure to support long-term sustainability and shareholder value creation.
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