Business

A new era begins at Dangote Sugar

As leadership changes, locals hope their livelihood remains untouched and the refinery still runs communities.

In Tunga, a once quiet town in Nasarawa State, the noise of machinery from Dangote Sugar’s massive backward integration site has become the town’s unofficial heartbeat. But as billionaire industrialist Aliko Dangote steps down as chairman of the refinery he built into a national powerhouse, ending a 20-year tenure, farmers, factory workers, and transporters alike are asking: What happens next?

 

A legacy cast in sugar

 The announcement was made by Dangote Sugar Refinery in a statement signed by Company Secretary, Temitope Hassan, confirming that the retirement becomes effective on June 16, 2025.

For over two decades, Aliko Dangote did not just refine sugar; he redefined local industrial ambitions. From Nasarawa to Taraba, his push for backward integration created thousands of jobs, rehabilitated rural roads, and spurred agricultural training schemes.

The company’s statement acknowledged his immense contribution, stating:

In line with the principles of good corporate governance and succession planning, Dangote Sugar Refinery Plc hereby announces the retirement of our esteemed Chairman of Board of Directors of the company, Alhaji Aliko Dangote (GCON), effective June 16, 2025.

In Adamawa’s Numan region, young people who once migrated to Yola or Jalingo for work now stay back, employed either on sugarcane farms or at the local processing outposts. Small businesses, bike mechanics, food vendors, even tailors have built livelihoods around the steady pulse of the refinery related activities.

 

A governance step, but also a shift

According to the company, Dangote’s decisions to step down is in line with corporate governance best practices and succession planning. His replacement, Arnold Ekpe, is a respected former banking executive with a track record in institutional leadership. Yet, some industry observers worry about what this leadership could mean in practical terms for the refinery’s long community engagement. Dangote name carries weight, not just in boardrooms but in the communities, that means sustaining trust and momentum under new leadership will require intentional outreach.

The leadership transition comes at a time when Dangote Sugar, like many Nigerian firms, is navigating currency instability, inflation, and increased production costs. Last quarter saw a dip in profit of ₦193.7 billion, while gross margin plunged to 6.1 per cent (from 28.7 per cent a year earlier), and expansion into new farming zones has reportedly slowed, and if the new leadership trims budgets or pauses local investments, the effects could ripple far beyond balance sheets.

Also Read: 15-mths-old Dangote Oil Refinery to give petrol oxygen to NNPC’s dry run

 

Can sugar still be sweet in Nigeria?

Although the refinery has affirmed its commitment to local content, the next few months will be key. Will the new leadership deepen relationships with farmers and local governments? Or will the ‘Dangote Vision” shift towards a more corporate, investor-led approach?

For now, in towns like Tunga in Nasarawa State, hope rests on one thing: that the refinery’s sweet success does not turn bitter in the aftermath of its founder’s stepping down.

In Nigeria’s sugar belt, the factories may still hum, but communities are watching closely to see whether Dangote’s departure marks the end of an era, or the start of a new chapter.

 

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