Shareholders have welcomed the decision of the President of Dangote Industries Limited, Aliko Dangote, to retire from two of his companies, saying the development is good for corporate governance.

Billionaire businessman and Africa’s richest man has recently exited as chairmen of two of his subsidiaries – Dangote Sugar PLC and Dangote Cement PLC – giving room for new chairmen for the two companies.

This happened within a space of two months – detaching himself directly from the running of the two publicly quoted companies.

Dangote Sugar had in June announced the exit of its Chairman after 20 eventful years. The change took effect from June 16, 2025.

According to a communication to the Nigerian Exchange, the Sugar subsidiary stated that Dangote during his time played a pivotal role in shaping the company’s growth, solidifying its market leadership, and ensuring steady shareholder value.

Under Dangote’s leadership, the company implemented major projects to boost domestic sugar production, including Backward Integration Projects in Adamawa, Taraba, and Nasarawa States which strengthened the company’s supply chain and contributed to its success.

The company’s statement to the Nigerian Exchange Group acknowledged Dangote’s immense contribution, highlighting his instrumental role in shaping the company’s strategy and culture.

His leadership built a robust foundation for growth and sustenance, cementing Dangote Sugar Refinery’s position as a major player in Nigeria’s sugar industry.

Following a thorough selection process, the Board of Dangote Sugar Refinery Plc. appointed Arnold Ekpe, a seasoned banking executive, as the company’s new Chairman.

Ekpe brings extensive leadership experience, a deep understanding of corporate governance, and a strategic vision to drive the company’s next phase of growth. As an Independent Non-Executive Director, he is well-positioned to lead the company to further success.

A statement by the Company Secretary/Legal Adviser, Temitope Hassan said, “Mr. Ekpe brings with him a wealth of experience, having held senior leadership roles in the banking sector and other key industries. His strategic acumen, deep understanding of corporate governance, and commitment to stakeholder value make him well-positioned to lead the Board as we continue to build on our strong foundations and pursue sustainable growth.

“We welcome Mr. Ekpe to his new role and look forward to the next chapter in our Company’s journey under his leadership. We also express our deep appreciation to Alhaji Aliko Dangote for his years of exemplary service and unwavering commitment to excellence.”

Like Sugar, Like Cement

Shortly after his exit from Dangote Sugar, the President of the Dangote Industries Limited also took a bow from his Cement subsidiary, Dangote Cement PLC, paving the way for Mr. Emmanuel Ikazoboh, an independent non-executive director, to take over.

He was said to be relinquishing his position as chairman and retiring from the board so as to focus more attention on the Refinery, Petrochemicals, Fertiliser and Government Relations, in order to drive the company’s five-year business trajectory to a superlative height.

The board of Dangote Cement Plc. while appointing Mr. Emmanuel Ikazoboh, an independent non-executive director, as the new Chairman, Hajiya Mariya Aliko Dangote was also appointed to the Board of Directors of the Company while Prof. Dorothy Ufot retired from the Board.

Dangote’s journey with cement began with a bold dream: to make Nigeria and Africa self-sufficient in cement production. Through strategic investments in state-of-the-art plants, and a commitment to local content, he not only met that goal but exceeded it.

Dangote as the founder of the Dangote Cement PLC and Dangote Sugar, as one of the world’s renowned entrepreneurs, has been able to stabilise the two subsidiaries from their foundation level, providing leadership and direction that have made the two companies attractive to investors and the shareholding public.

For instance, Dangote Sugar’s turnover increased by 51 per cent to N665.6 billion for the year ended December 31, 2024, as against the corresponding figure of N441.5 billion recorded for the 2023 financial year.

The firm is targeting the production of 1.5 million metric tonnes of refined sugar annually and at the same time generate over 75,000 employment opportunities, in the company’s value chain.

Similarly, Dangote Cement Plc. has 52.0Mta capacity across the African continent with Nigeria accounting for 35.25Mta. Currently, additional greenfield plants are coming up in Cote Ivoire (3.0Mta) and Itori, Nigeria (6.0 Mta) and on completion this year will push total capacity to 61.0Mta.

Dangote Cement Plc recorded the highest revenue and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in the history of the company.

According to the unaudited results for the six months ending 30th June 2025, the group revenue went up by 17.7 percent, from N1,760 billion at the same period in 2024 to N2,071.6 billion, representing the highest revenue in the history of the company.

Group Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 41.8 percent to N944.900 billion from N666.22 billion. EBITDA (Nigeria Operations) grew by 82.4 percent to N845.4 billion. Profit before tax went up from N292.96 billion to N730 billion indicating 149 percent increase while profit after tax surged by 174.1 percent to N520.5 billion, in contrast to N189.90 billion in the same period at the preceding period. In the six months, export volumes from Nigeria increased by 18.2 percent, with 18 successful clinker shipments made to Ghana and Cameroon.

$20bn refinery in focus

The retirement of Dangote from those two companies hinged on its decision to focus on the refinery and petrochemical project.

The $20bn Dangote Petroleum Refinery and Petrochemicals is a 650,000 barrels per day (BPD) integrated refinery located in the Lekki Free Zone of Ibeju Lekki Lagos, Nigeria. It is also described as Africa’s biggest oil refinery and the world’s biggest single-train facility.

The start of production by the refinery in January 2024 represented a new era in Nigeria’s and Africa’s ambition towards achieving significant local refining. Nigeria in particular has relied heavily on importation of refined petroleum products despite the existence of four state-owned refineries which have gulped trillions of naira over the last decade without refining any product.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the rise in local refining cut petrol import by 30 million litres daily.

But for Dangote, it has been a battle from a start. Starting the refinery project was to him, the most daring and boldest move he ever took.

He recently told Forbes that the refinery is the biggest risk of his life. “It was the biggest risk of my life. If this didn’t work, I was dead,” he had said.

He has been contending with various stakeholders and those he referred to as “cabal” in the oil and gas industry – the marketers. He first had a running battle with the Nigerian National Petroleum Company Limited (NNPCL) over inadequate crude supply.

But the relationship is currently being smoothened by the new management of the national oil company. Dangote recently declared that the new NNPC leadership has been supportive of his refinery.

A source close to him told our correspondent that the decision to step down from Cement and Sugar was to enable him concentrate fully on his oil and gas business. “It is a quantum of investment and he cannot afford to fail,” the official said.

However, another source explained that this has not diminished his shareholding interest in the two companies only that he has stopped being part and parcel of the running of the two companies.

“Stepping down from Cement and Sugar will enable him to focus all his energy on Philanthropy, Oil & Gas, and new adventures to advance Nigeria’s economy,” he said.

What shareholders are saying

Speaking with our correspondent, Adebayo Adeleke, former General Secretary of the Independent Shareholders Association of Nigeria (ISAN) aligns with the opinion that quitting the two companies would enable him to concentrate fully on the refinery project.

He said the situation is good for corporate governance and an indication of an entrenched succession system in the companies. He said other companies should take a cue from Dangote by quitting when the ovation is loudest.

He said, “The implication to me is rather positive. It is good one that now in the life of the entrepreneur and the core investor, a very dominant core investor, his stepping aside is a sure sign of succession planning and is also a positive one for corporate governance.

“So if we have good succession planning, that the founder and the dominant figure could voluntarily excuse himself from the board and there is a system that guarantees a good successor. It is a plus for corporate governance. It also shows that corporate governance is being improved in those subsidiaries of the group.

“More importantly also, the higher you go, the more you get to focus on certain things that are probably much, much more fundamental and germane to their existence the way he has already gotten Fertilizer and the petrochemicals and refinery going. So he can’t afford to be everywhere, I think it will allow him to focus more on where the bulk of his investment is now domiciled, especially given the Olokola deep seaport that was once a backup. So it is good for him to move up and allow other people to also run and manage these businesses so that people will know that yes, the survival of these businesses are not anchored only on survival of just one man.”

On his part, Mr. Boniface Okezie, hailed Dangote’s exploits in Cement and the Sugar’s backward integration, saying both companies have stabilised under Dangote’s watch. However, he stated that he would have loved to see him crashing the price of cement, saying selling a 50kg bag of cement for N11,000 is not acceptable.

“For me the refinery is a bigger project for him than Sugar and Cement combined. Also the refinery is also more complex. He had been in cement for decades and in line with the corporate governance principle, he has got people to run the companies for him and that does not take him away from those companies. He is still the promoter of those companies and those people are going to work for him and it does not mean the companies would be taken away from him.” (Daily Trust)