Dangote Sugar Refinery Plc has officially launched a massive N485.88 billion rights issue as part of efforts to strengthen its financial position and expand local sugar production across Nigeria.
The company announced that it is offering 8.098 billion ordinary shares valued at 50 kobo each to existing shareholders. Under the arrangement, shareholders will be entitled to purchase two new shares for every three shares they currently own at a price of N60 per share.
The offer opened on May 25, 2026, and is expected to close on June 24, 2026. The qualification date for shareholders was fixed for April 20, 2026.
The rights issue was approved by shareholders during the company’s 20th Annual General Meeting, pending necessary approvals from regulators.
Chairman of the company, Arnold Ekpe, explained that the fundraising initiative would help improve the company’s balance sheet while also supporting future business growth.
According to him, the company is positioning itself for stronger profitability and long-term expansion through strategic investments in local sugar production.
Ekpe noted that the company’s “Sugar for Nigeria” backward integration programme remains a key part of its long-term vision. The initiative focuses on increasing local sugar production through large-scale sugarcane cultivation and processing projects within the country.
He explained that the programme is designed to reduce Nigeria’s dependence on imported sugar and lower the pressure created by foreign exchange fluctuations. The initiative is also expected to create employment opportunities and support local farmers through out-grower farming schemes.
As part of the expansion strategy, Dangote Sugar plans to produce 1.5 million metric tonnes of sugar annually using locally cultivated sugarcane.
To achieve this target, the company intends to develop about 45,000 hectares of farmland. The production plan includes allocating 2.7 million tonnes of sugarcane to the Numan project and 3.35 million tonnes to the Nasarawa project.
The company added that meeting these production goals would require major investments in land preparation, irrigation systems, factories, and other production infrastructure over the next five years.
Market analysts have described the rights issue as one of the biggest equity fundraising exercises seen on the Nigerian Exchange in recent years.
They believe the company’s strong market presence and ambitious expansion plans could attract significant interest from investors and existing shareholders looking to benefit from the company’s long-term growth strategy.
Analysts also pointed out that increasing local sugar production could help improve Nigeria’s agricultural value chain while supporting government efforts aimed at boosting local manufacturing and reducing import dependence.
The development further highlights the growing focus among major Nigerian companies on expanding domestic production capacity despite economic challenges and foreign exchange pressures.
