Dangote Sugar To Raise 21 Billion Naira From Capital Market
Dangote Sugar Refinery, has revealed plans to raise 21.2 billion Naira from the capital market for its backward integration project and to also actualise the Dangote Sugar Master Plan.
The Group Managing Director of Dangote Sugar, Mr. Abdullahi Sule, made the disclosure, yesterday, at the company’s ‘facts behind the figure’ presentation at the Nigerian Stock Exchange, NSE.
He said the fresh capital would be raised before the end of the 2017 fiscal year.
He explained that the 21.2 billion Naira will form part of the 106 billion Naira budgeted by the company to finance its operations within the next six years, adding that the Board of Directors was in the process of finalising plans for the capital raising and to decide the right mix of funding.
Sule stated that the Dangote Sugar Master Plan (DSMP), which is an offshoot of the Federal Government’s Nigerian Sugar Master Plan (NSMP) introduced in 2012, aimed to ensure self-sufficiency in sugar production by 2020.
While Nigeria consumes an average of 1.3 million metric tonnes of sugar every year, the NSMP aims to produce 1.7 million metric tonnes of sugar every year within the specified period, and Dangote Sugar as a dominant player in the industry has undertaken to produce 1.5 million Mt every year.