In a strategic leadership shift, Dangote Sugar Refinery Plc has announced the appointment of Mr. Arnold Ekpe as the new Chairman of its Board, effective June 16, 2025, following the retirement of Alhaji Aliko Dangote (GCON) after nearly two decades of distinguished stewardship. The announcement was made in a corporate filing on June 11, 2025, and underscores the company’s commitment to continuity, professionalism, and financial rejuvenation amid economic headwinds.

Transition at the Top: From Dangote to Ekpe

Alhaji Aliko Dangote’s exit marks the end of an era for Nigeria’s leading sugar manufacturer. Widely respected for building Dangote Sugar into a dominant force in West Africa’s consumer goods landscape, his departure comes at a pivotal moment as the company aims to recover from recent financial strain.

According to the Board, Arnold Ekpe’s appointment follows a rigorous selection process, chosen for his deep expertise in engineering, banking, and corporate finance. The Board expressed firm confidence in his leadership, stating that he is well-positioned to guide the company into a new chapter of stability and growth.

Who Is Arnold Ekpe?

Mr. Arnold Ekpe is a highly regarded Nigerian business executive with over three decades of cross-sectoral leadership experience in finance, corporate governance, and engineering. Born in August 1953, he began his academic journey at King’s College, Lagos, graduating in 1972 before pursuing higher education in the United Kingdom.

• University of Manchester (1973–1976): First Class Honours in Engineering (Shell Scholar)

• Manchester Business School (1977–1979): MBA

Ekpe’s professional path began in 1977 at Schlumberger SA as a Wireline Logging Engineer. He moved into corporate management in 1979 with Alcan Aluminium Nigeria, before entering the financial sector in the 1980s. Over the years, he held key leadership roles at:

• International Merchant Bank (Head of Strategy, General Manager – IMB Securities)

• City Securities (FCMB Subsidiary) – Head of Corporate Finance

• Nigeria International Bank (Citibank Nigeria) – General Manager

• Ecobank Transnational Incorporated – Group CEO (Until his retirement in 2012)

Mr. Ekpe joined Dangote Sugar Refinery Plc as an Independent Non-Executive Director in 2024 and now takes the reins as Chairman, bringing a wealth of institutional knowledge and external insight to the boardroom.

Financial Crossroads: Revenue Booms, But Profitability Struggles

Ekpe’s tenure begins at a time of both promising growth and financial pressure. The company’s Q1 2025 unaudited results showed a record revenue of N213.93 billion, up 74.31% year-on-year. However, profitability remains elusive.

• Cost of Sales: Consumed 95.67% of revenue, leaving limited room for operating and finance costs.

• Pre-Tax Loss: Reported at N22.63 billion—an improvement over the N106.86 billion loss in Q1 2024, largely due to falling net finance costs.

• Borrowings: Up significantly to N727.29 billion, marking a 50.98% increase from N481.78 billion in Q1 2024.

• Liabilities: Account for over 81% of total assets, which stood at N1.045 trillion as of March 2025.

Despite impressive top-line growth, Dangote Sugar remains heavily leveraged, a major concern Ekpe will need to address through tighter cost controls, debt restructuring, and supply chain efficiencies.

Winds of Change: Macroeconomic Conditions Improving

The broader economic environment in Nigeria has begun to show signs of recovery, particularly with respect to foreign exchange volatility, which has battered consumer goods companies over the last two years.

According to Nairametrics, net FX losses for major Nigerian firms dropped by 98% year-on-year, falling from N1.17 trillion in Q1 2024 to just N22.2 billion in Q1 2025. This easing pressure provides a valuable window for companies like Dangote Sugar to recover margins.

Also offering relief is the recent decline in global sugar prices, driven by favorable weather in Brazil, which supplies 96% of Nigeria’s raw sugar imports. Falling input costs are expected to support improved profit margins for local refiners such as BUA, Golden Penny, and Dangote Sugar.

Strategic Priorities for Ekpe

Mr. Ekpe’s appointment signals the start of what analysts believe will be a period of strategic recalibration. His blend of engineering know-how and financial acumen makes him particularly suited to navigating the complexities of the current business environment.

Some of the key areas likely to define his early leadership include:

• Cost Optimization: Curbing raw material and logistics costs to protect margins.

• Debt Management: Addressing the company’s rising leverage through potential refinancing or equity injection.

• Operational Efficiency: Modernizing supply chains and streamlining refinery operations.

• Board Governance: Reinforcing corporate governance and transparency to bolster investor confidence.

• Sustainability: Deepening investment in local sugarcane cultivation and backward integration under Nigeria’s Sugar Master Plan (NSMP).

Looking Ahead: An Era of Pragmatic Leadership

Mr. Arnold Ekpe’s elevation to Chairman represents a shift from founder-led leadership to institutionally-driven governance. While Aliko Dangote’s legacy as a business titan remains intact, the company now enters a phase where board-led decision-making and performance-focused strategy will be critical.

With macroeconomic conditions gradually improving and key input costs easing, the timing of this transition could not be more strategic. If effectively managed, Dangote Sugar could emerge from its current challenges stronger and more resilient—ready to capitalize on Nigeria’s rising demand for consumer goods.

The coming months will offer the first real test of Ekpe’s leadership, as stakeholders look to see how he balances short-term pressures with long-term value creation.