Dangote partners with Niger Foods to boost rice production, while Dangote Sugar shows resilience amidst economic headwinds. A look at key developments.
Dangote, Paddy Supply, and Niger Foods: A Sweet Deal for Nigeria's Rice Bowl?
Dangote's collaboration with Niger Foods aims to ramp up rice production, while Dangote Sugar navigates economic challenges. It's a mixed bag of progress and resilience.
A Partnership to Boost Rice Production
In a move to bolster Nigeria's food security, Dangote Rice Limited has teamed up with Niger Foods Security Systems and Logistics Company Limited. The deal, formalized recently in Lagos, aims to ensure a steady supply of high-quality paddy rice, making the staple food more accessible to Nigerian consumers. The Niger State government, owner of Niger Foods, lauded Dangote Industries Limited for its commitment to tackling the country's food security challenges head-on.
Under the agreement, Niger Foods will engage in large-scale mechanized and commercial farming, focusing on the development and production of agricultural products, particularly paddy rice, which will then be supplied to Dangote Rice. Niger State Governor, Mr. Mohammed Umaru Bago, expressed his appreciation for Aliko Dangote's investment in the Nigerian economy, highlighting Niger State's abundant arable land and water resources.
Mr. Dangote shared that Niger Foods shares the vision of establishing an efficient and profitable agricultural business. Dangote also mentioned that Niger State joins Jigawa, Sokoto, Kebbi, Kano and Nasarawa as states where Dangote Rice has mills under construction. By the end of 2026, Dangote Rice aims to off-take 1 million tons of paddy rice from local farmers.
Dangote Sugar: Sweetening the Deal Amidst Challenges
While Dangote Rice is forging ahead with paddy production, Dangote Sugar Refinery Plc has been navigating a challenging operating environment. However, recent financial results suggest the company is adapting well. In the first half of 2025, Dangote Sugar managed to reduce its loss by a whopping 83.13%, posting a loss of N24.3 billion compared to the N144.0 billion loss in the same period last year. Revenue also saw a boost, increasing by 45.54% to N430.2 billion.
This turnaround was driven by increased earnings from sugar and molasses sales. Gross profit rose by 185.64% to N51.7 billion, and operating profit grew by 269.90% to N38.1 billion. While finance costs remained significant, they were notably lower than the previous year.
Looking Ahead: A Promising Outlook
The partnership between Dangote Rice and Niger Foods represents a significant step towards enhancing Nigeria's rice production capacity and ensuring food security. Dangote's commitment to investing in local agriculture is commendable, and the collaboration with Niger State could serve as a model for other states to follow. Meanwhile, Dangote Sugar's resilience in the face of economic headwinds is a testament to its strong fundamentals and strategic adjustments.
The big picture? It looks like Dangote is cooking up something good, both in the rice paddies and the sugar refineries. Here's hoping these developments continue to sweeten the deal for Nigerian consumers and farmers alike!
