Presco targets to expand its oil palm business in Abia State, Nigeria
The proposal includes the acquisition and development of approximately 14,000 hectares for plantations and associated agro industrial activities.
NIGERIA – Presco Plc, West Africa’s leading integrated palm oil producer, is set to expand its operations into Abia State through a landmark US$200 million investment in large-scale oil palm plantations and processing facilities.
Abia State Governor Dr. Alex Otti announced the state’s readiness to sign a Memorandum of Understanding (MoU) with the company during a meeting in Umuahia with Presco’s Chairman, Olakanmi Rasheed Sarumi, marking a pivotal step toward reviving the region’s agricultural legacy.
This strategic move aligns with Presco’s aggressive growth strategy, following its recent acquisition of 10,000 hectares in Cross River State, as the firm aims to boost Nigeria’s domestic palm oil production amid heavy reliance on imports.
The proposed project initially targets up to 14,000 hectares, leveraging Abia’s fertile topography and high-yield lands in areas such as Ozuitem, Abam, and Ulonna.
Governor Otti hailed the initiative as a nod to the golden era under former Eastern Region Premier Michael Okpara, whose farm settlements once positioned the area as a global palm oil powerhouse.
He committed to state support for land acquisition, security, and fair compensation for host communities, ensuring sustainable development and minimizing conflict.
For Presco, this expansion reinforces its market dominance, with operations already spanning Nigeria and Ghana, and recent revenue surges driven by premium domestic pricing.
The investment promises thousands of direct and indirect jobs, rural economic stimulation, and enhanced food security by curbing Nigeria’s US$600 million annual palm oil import bill.
For Presco, this new investment is an opportunity to strengthen its production capacity of palm oil and derivatives in the sector where it is already the market leader.
In its 2025 annual report, the company reported year-on-year revenue growth of 38.58% to 245.3 billion naira (US$177.84M).
In Nigeria, Presco’s main product range includes refined, bleached, and deodorized palm oil (RBD palm oil), palm olein, palm stearin, palm fatty acid distillate, crude palm oil, and crude and refined palm kernel oil. The company also produces palm kernel meal for industrial and agricultural uses.
Presco’s due diligence, including soil sampling and stakeholder consultations, paves the way for swift MoU signing and project takeoff.
As Nigeria pushes for self-sufficiency in edible oils, this partnership could catalyze a new era of agro-industrial revival in the Southeast, fostering inclusive growth and export opportunities.
As a reminder, in 2024, Presco expanded its footprint in West Africa through the strategic acquisition of a 52% stake in Ghana Oil Palm Development Company (GOPDC), thereby strengthening its regional presence and positioning itself as a pan-African leader in palm oil.
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