Business
Why Investors Savour Dangote Sugar Equities
Discerning investors who kept faith with Dangote Sugar’s equities at the Nigerian Stock Exchange (NGX) for H1, 2023 are savouring the strong earnings, which has resulted into a 36.21 percent capital gain for the period.
Biztellers gathered that over a 42-month period, between 2020 and June 31, 2023, investors who kept faith with the stock found their wealth to have grown by a 48.85 percent capital appreciation.
According to Managing Director, APT Securities and Funds Limited Kasimu Garba Kurfi, the capital growth is traceable to the 2022 full year and Q1, 2023 results.
In its 2022 financial year, the company announced a 46.02 percent increase in revenue to N403.24 billion from N276.05 billion.
Profit before tax grew 137.72 percent to N82.30 billion from N34.02 billion. Profit after tax increased 148.25 percent to N54.74 billion from N22.05 billion.
In the same period, the company paid tax of N27.56 billion, up from N11.96 billion in 2021.
In addition to posting good figures, Dangote Sugar also delivers good dividends which lures discerning investors, including bargain hunters to take positions.
Some enter the stocks, months before dividend payment in anticipation of cash reward, and exit later to take advantage of price appreciation.
In 2022, the company announced N12,146,874 dividends to its shareholders.
The uptrend in profit came amid rising costs as the cost of sales rose from N225.85 billion in 2021 to N311.28 billion in 2022. The increase in cost is due to currency depreciation, a rise in the cost of raw material importation, an uptick in distribution cost, a rise in diesel price and tax expenses.
Biztellers gathered that the company, deployed efficient cost management strategies to tame spiraling costs. Efforts in this direction saw it successfully cut down selling and distribution expenses to N741 billion from N906 billion in 2021.
In the same vein, finance cost fell to N3.42 billion from N5.21 billion in the same period.
Fund managers expect Dangote Sugar to maintain its stellar performance for the rest of 2023.
The optimism is on the back of the impressive Q1, 2023 result and price gain in H1, 2023. In Q1, 2023, revenue rose 8.23 percent from N94.44 billion in Q1, 2022 to N102.22 billion. Profit before tax grew to N18.33 billion from N13.60 billion.
This is in spite of an increase in finance cost to N8.05 billion from N3.50 billion. The result confirmed the effectiveness of the company’s cost containment strategies as selling and distribution expense declined to N174.56 billion from N260.81 billion in Q1, 2022. The cost of sale rose only marginally from N74.98 billion in Q1, 2022 to N76.47 billion in Q1, 2023.
Biztellers reports that Dangote Sugar’s backward integration policy is building further investor confidence in the company’s ability to successfully contain cost of raw sugar importation, and grow bottomline and returns.
It was gathered that the company is focused on its 10-year sugar development plan. By the sugar development policy, Dangote Sugar aims to produce 1.5 million metric tonnes per annum from locally grown sugarcane.
In pursuant of the plan, the company has committed enormous resources to its Dangote Sugar Taraba Limited, Dangote Sugar Nassarawa Limited and Dangote Sugar Adamawa Limited in which it targets expanding sugar refining capacity from 3,000 tonnes per annum to 9,000 metric tonnes.
Biztellers investigations show that as part of the backward integration project, Dangote Sugar is poised to grow its sugar plantation from a land area of 8,700 hectares in 2022 to about 24,200 hectares in 2030.
To assure shareholders of its culture of transparency, the company’s Board of Directors has put in place a strong corporate governance culture.
Business
ADF Targets 5 Million Students, 2 Million Vulnerable Women
In a bold move to deepen retail participation in Nigeria’s capital market, the Aliko Dangote Foundation (ADF) has unveiled a share grant initiative aimed at helping up to five million tertiary students and two million vulnerable women become shareholders in Dangote Petroleum Refinery and Petrochemicals (DPRP) through its Initial Public Offering (IPO).
Managing Director and Chief Executive Officer of ADF, Zouera Youssoufou, disclosed that the Foundation will match qualifying share subscriptions by eligible beneficiaries. Under the programme, students who subscribe for the minimum 10 shares worth N5,250 will receive an additional 10 shares funded by the Foundation, subject to the approved process and allocation, effectively doubling their holdings to 20 shares.
Speaking during a television interview, Youssoufou said the initiative was designed to turn the refinery’s “People’s IPO” vision into reality by giving traditionally underserved groups a direct stake in one of Africa’s largest industrial assets.
“When Aliko announced the IPO, he described it as the IPO of the people and wanted as many Nigerians as possible to participate,” she said.
READ ALSO: FG Lacks Capacity to Meet Dangote Refinery Crude Demand
According to her, students and vulnerable women were specifically selected because they have historically been underrepresented in the capital market.
The ADF said it is prepared to support up to five million students enrolled in Nigerian tertiary institutions, including universities, polytechnics and colleges of education. Eligible applicants must be at least 18 years old and enrolled in a recognised institution. The Foundation is working with relevant educational authorities to verify beneficiaries.
Youssoufou revealed that about N25 billion has been earmarked for the student component of the scheme, while the broader programme for students and vulnerable women is valued at approximately N40 billion.
She emphasised that the intervention is a grant, not an investment, with all shares ultimately belonging to the beneficiaries.
“The shares end up with the beneficiary. Our goal is to help people who may never have had the opportunity to own shares begin building long-term wealth,” she said.
Beyond students, ADF plans to support up to two million vulnerable women, including widows, women living in extreme poverty, persons with disabilities, and widows of members of the Armed Forces. The Foundation is partnering with state governments, the Ministry of Women Affairs, the Armed Forces and other institutions to identify eligible participants.
According to Youssoufou, the initiative is not only about widening ownership in the refinery but also about promoting financial literacy, encouraging a culture of savings and investment, and helping Nigerians build sustainable wealth through participation in the capital market.
Business
FG Lacks Capacity to Meet Dangote Refinery Crude Demand
Nigeria’s efforts to increase production and curb crude oil theft still leaves her short of meeting the demands of the 700,000 barrels demand of the Dangote Petroleum Refinery and Petrochemicals (DPRP).
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the disclosure during an interview on Channels Television’s Politics Today at the weekend.
The disclosure comes amid renewed debate over government intervention in the petroleum market, with proposals for production subsidies, the 30-days petrol discount and other measures to support domestic refining and reduce the cost of petroleum products.
READ ALSO: Fuel Discount: Presidency Explains Why Atiku’s Production Subsidy Proposal May Fail
He explained that Nigeria’s total crude oil production does not translate into an equivalent volume available for allocation by the government.
Oyedele said Nigeria’s crude oil production of about 1.8 million barrels per day was shared among parties operating under production-sharing contracts and joint ventures, while production costs, royalties and other obligations further reduced the volume available to the government.
“Under the production-sharing contract and joint venture, they share these things, and the ratios vary. Let’s say roughly 45:55,” he said.
He explained that oil producers first recover eligible production costs through cost oil, while royalties and contractual sharing arrangements also determine the quantity ultimately accruing to the government.
“The long and short of what I’m telling you is whatever is left for Nigeria, we exhaust it almost entirely because of fuel subsidy,” he said.
According to the minister, the situation was particularly severe before President Bola Tinubu introduced the economic reforms in May 2023, when the Nigerian National Petroleum Company Limited (NNPC Ltd), which holds the country’s crude on its behalf, had less than 100,000 barrels of freely available crude remaining.
He said the government had exhausted much of its revenue and resorted to printing money before turning to future crude oil production to secure commitments used to finance present consumption.
“That was a ticking time bomb,” Oyedele said, describing the arrangement under which future oil production was committed to support current fuel consumption.
The minister, however, acknowledged improvements following increased production, efforts to reduce crude oil theft and the renegotiation of some existing commitments that had tied down the country’s crude.
He cited comments by business leader Tony Elumelu, who had previously expressed frustration over the scale of crude oil theft in Nigeria, and subsequently reported an improvement in the situation.
Despite these gains, Oyedele said the country was yet to attain the level of freely available crude required to supply the Dangote refinery with its full daily requirement.
“But we are still not at the point where we can give Dangote 700,000 barrels,” he said.
The minister dismissed proposals for the government to supply the refinery with discounted crude or at production cost, arguing that such proposals failed to recognise the constraints on the volume of oil available for allocation.
“We don’t have enough to service Dangote. Dangote imports crude,” he said.
He added that the naira-for-crude arrangement introduced by the Federal Government had helped provide some stability but had not eliminated the supply constraints.
According to him, sustained increases in crude oil production and the release of additional barrels from existing commitments would eventually enable Nigeria to meet the requirements of Dangote and other domestic refiners.
“As we ramp up production and we free up some barrels, we’ll get to a point where we’ll be able to give Dangote everything he wants and other refiners will be able to get enough,” he said.
Oyedele also expressed hope that Nigeria would eventually refine all the crude oil it produces domestically and export refined petroleum products rather than crude.
The disclosure comes amid renewed debate over government intervention in the petroleum market, with proposals for production subsidies and other measures to support domestic refining and reduce the cost of petroleum products.
Oyedele further maintained that achieving that ambition will depend not only on the expansion of refining capacity but also on sustained growth in crude oil production and the availability of additional volumes for domestic processing.
Business
NCDMB, Renaissance Empower 60 with Oil & Gas Technical Skills
A partnership of the Nigerian Content Development and Monitoring Board (NCDMB), Renaissance Africa Energy Company Limited, has unveiled a 12-month training program at Nigeria Machine Tools Limited (NMTL), Osogbo, Osun State.
It was gathered that the initiative will equip 60 young Nigerians with specialised expertise in oil and gas engineering as well as other critical technical skills, fostering a new generation of industry-ready professionals.
The programme is on the back of the Nigerian Content Human Capacity Development (NC HCD) Training Programme for Renaissance Africa Energy Company Limited’s EPU Phase 2 Gas Development Project.
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It is designed to equip participants with advanced technical expertise, with the curriculum spanning engineering design, fitter machining, conventional machine tool operations, programming, computer-aided design (CAD), computer-aided manufacturing (CAM), electrical and mechanical maintenance, and document control.
Structured over 12 months, the programme combines six months of intensive classroom instruction with six months of supervised on-the-job training in reputable companies. Graduates are expected to earn internationally recognised certifications upon completion.
During the official launch at the NMTL, Osogbo, Osun State, the NCDMB’s Director of Capacity Building, Engr. Abayomi Bamidele, reaffirmed the Board’s commitment to bridging critical technical skills gaps in Nigeria’s oil and gas industry.
Represented by Tare Bufazi, assistant manager, Human Capacity Development, Bamidele described the initiative as a strategic intervention to address manpower shortages and prepare Nigerians for meaningful participation across the oil and gas value chain.
“The importance of this programme cannot be overstated,” he noted, revealing that the 60 trainees—comprising 33 graduates and 27 vocational trainees—would undergo specialized training tailored to industry needs. He emphasized that NCDMB’s mission extends beyond promoting local participation to building the technical capabilities required to sustain the sector. Human capacity development, he stressed, is central to strengthening local content, creating opportunities, and advancing the Federal Government’s industrialization agenda.
Bamidele urged participants to approach the programme with discipline and commitment, highlighting that it offers more than certificates—it builds practical competence and professional experience for long-term careers. He also acknowledged the contributions of Renaissance Africa Energy Company Limited, Seflam SGL, and the NMTL, whose collaboration made the initiative possible.
On behalf of Renaissance Africa Energy Company Limited, Richard Oyiborhor, Interface and Integration Manager for the NLNG Supply Project, reiterated the company’s dedication to nurturing Nigerian talent and strengthening local capabilities.
He commended the NCDMB’s leadership in advancing Nigerian content and praised the partnership with Seflam SGL and NMTL as a vital step in developing the nation’s industrial workforce.
Senior manager, Business Interface at Seflam SGL, Bisola Agboluaje, congratulated the trainees and traced the programme’s origins to 2024, when NCDMB approved the training plans. She described the initiative as a forward-looking investment in Nigeria’s technical talent pool.
The NMTL’s chief of operating officer, Obehi Ojeagha, welcomed the participants and lauded the collaboration. She emphasized the institution’s 46-year legacy in supporting Nigeria’s industrial development and expressed confidence that the trainees would acquire the skills, discipline, and experience needed to contribute meaningfully to the oil and gas sector.





