Rasheed Sarumi to gain US$46M in Presco palm oil deal
Rasheed Sarumi’s US$46-million gain from Presco’s acquisition of Saro Oil Palm underscores the deepening connection between Nigeria’s corporate elite and the country’s agricultural trajectory, while reigniting debate over governance standards, inclusive growth, and fair wealth distribution within the sector.
NIGERIA – Nigerian agro-industrial tycoon Rasheed Sarumi is set to earn a windfall of US$46.1 million following Presco Plc’s acquisition of Saro Oil Palm Limited, a company he owns through his conglomerate, Saro Africa International.
The deal, announced in mid-August 2025, is part of Presco’s aggressive expansion strategy across West Africa, with the total acquisition package, including a Ghanaian venture of US$124.9M, valued at US$171.6 million.
Presco, Nigeria’s leading palm oil producer, is acquiring Saro Oil Palm’s flagship 10,000-hectare plantation in Edo State.
The asset is expected to generate ₦85 billion (US$55.42M) in operating profit by 2029.
However, the plantation has faced scrutiny over land grab allegations from local communities, raising governance concerns amid the chairman’s dual role as seller and buyer.
Sarumi, who also serves as Presco’s chairman, previously orchestrated the acquisition of an 86.7% stake in Presco through Oak and Saffron, a special purpose vehicle under Saro Africa.
That move ended a 33-year ownership run by Belgian agribusiness giant SIAT SA.
The acquisition of Saro Oil Palm complements Presco’s phased takeover of Ghana Oil Palm Development Company (GOPDC), where it now holds a 52% stake.
GOPDC operates two estates spanning 21,000 hectares, producing over 35,000 tonnes of palm oil annually. Presco’s stake in GOPDC contributed 8% to its 2024 revenue.
To fund both deals and refinance existing debt, Presco plans to raise fresh equity capital through a rights issue.
The company’s financials reflect its bullish strategy: revenue surged 125.8% year-over-year to ₦198.7 billion (US$129.55M) in H1 2025, while net profit jumped 128.2% to ₦88.7 billion (US$57.83M). Total assets climbed to ₦613 billion (US$399.68M).
While the deal strengthens Presco’s regional dominance, Sarumi’s dual role as chairman and beneficiary has sparked debate over corporate governance and transparency.
Critics argue that such insider transactions require heightened scrutiny to ensure shareholder interests are protected.
As Presco consolidates its Nigerian and Ghanaian operations, the company is positioning itself as a powerhouse in West Africa’s edible oil market, driven by scale, integration, and rising demand.
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