Why Aliko Dangote’s Retirement Is a Smart Move for Dangote Sugar

Aliko Dangote announced his retirement as non-executive chairman of Dangote Sugar on June 16, 2025. Some people thought this meant he was pulling back from the company. But in reality, this is a smart and strategic decision that will strengthen the company’s future. Here’s why:

Stronger Leadership with a Banking Expert

Dangote appointed Arnold Ekpe, a well-respected banker with experience at Standard Chartered and Ecobank, as the new chairman. This change will:

• Reduce risks tied to relying too much on one key person (Dangote).
• Improve transparency and financial controls in the company.
• Show regulators and investors that Dangote Sugar is committed to strong management practices.

These improvements are already showing results. In early 2024, Dangote Sugar’s revenue grew by 20.1%, reaching ₦122.7 billion. Moody’s, a financial rating agency, also upgraded its outlook on the company, showing confidence in its future stability.

Expanding Sugar Production

Under Dangote’s leadership, the company has worked on large sugar plantations in Adamawa, Taraba, and Nasarawa states. The goal is to produce 700,000 tonnes of local sugar in four years. Dangote Sugar has invested over $700 million in this expansion, buying 120,000 hectares of land.

With Ekpe in charge, things are expected to move even faster:

• Land disputes will be resolved quickly.
• Relations with local communities will improve.
• Production will increase, cutting down on expensive sugar imports.

Boosting Investor Confidence

Investors prefer companies with clear leadership and strong financial management. Since Ekpe took over, Dangote Sugar’s stock price has gone up by 255% in 2023, reaching ₦57 per share and even hitting ₦82.65 in early 2024.

With a respected chairman leading the company, more investors are expected to invest, further increasing its value.

Ghana Expansion and Diversifying Revenue

Dangote Sugar is also growing beyond Nigeria. The company is building a 12,000-tonne-per-day sugar refinery in Ghana to reduce the country’s dependence on sugar imports, which cost $162 million annually. Ekpe is expected to help speed up the final steps needed to open the refinery on time.

Additionally, the company is looking at new ways to make money, including:

• Turning sugar waste into ethanol for fuel.
• Using sugar by-products for electricity generation.
• Producing animal feed pellets.

These ideas will not only add more revenue streams but also attract investors looking for environmentally friendly projects.