Abia, Presco Plc Move Toward $200m Palm Oil Investment Deal

The Abia State Government is preparing to enter into a $200 million partnership with Presco Plc aimed at expanding palm oil production in the state.

Governor Alex Otti revealed the plan on Friday while hosting a delegation from the company led by its chairman, Olakanmi Rasheed Sarumi, at his office in Nvosi, located in Isialangwa South Local Government Area.

According to the governor, both parties have reached a preliminary understanding and will soon proceed to prepare and sign a Memorandum of Understanding that will formally establish the collaboration before the project begins.

Otti emphasised Abia’s strong agricultural background, noting that agriculture remains a vital route to economic expansion and employment generation in Nigeria. He explained that the proposed project would begin with the development of a 14,000-hectare plantation, describing it as only the first phase of a potentially larger investment.

The governor expressed optimism about the state’s agricultural prospects, pointing to Abia’s favourable terrain and fertile soil, which he said could support high-yield palm oil production.

Reflecting on the region’s agricultural past, Otti referenced the legacy of former Eastern Region Premier Michael Okpara, whose farm settlement initiatives once positioned palm oil as a cornerstone of the region’s economy.

He stated that his administration intends to revive that legacy by restoring Abia’s role as a key centre for oil palm production. The governor also commended Presco Plc for conducting detailed due diligence and presenting a comprehensive proposal to the state government.

Otti assured the investors that the state would help facilitate land acquisition for the project and provide the necessary security support.

He further noted that the government maintains a policy of ensuring that host communities are properly compensated in order to foster peaceful and mutually beneficial development.

Earlier, Sarumi explained that the delegation’s visit was to explore the possibility of expanding Presco Plc’s operations into Abia State. He disclosed that the company intends to commit $200 million to palm oil cultivation and processing within the state.

According to him, the project could transform Abia into a major palm oil processing centre in the South-East, attracting other industries that depend on crude palm oil as a raw material.

Sarumi described the initiative as a modern continuation of the agricultural transformation started decades ago by Michael Okpara, whose farm settlement programme significantly boosted farming productivity across the region.

He said the project is expected to generate more than 5,000 direct and indirect jobs across plantation activities, milling operations, transportation and other related services.

Sarumi added that the initiative would prioritise the employment of local youths, help reduce rural-urban migration and stimulate economic growth in the host communities.

He further revealed that three locations in Abia State including Ozuitem, Abam and Ulonna have been identified as potential sites for the plantation.

The investment, he noted, aligns with the Abia State Government’s broader objective of turning the state into one of Nigeria’s leading industrial plantation hubs by 2032.

Once operational, the project is expected to contribute billions of naira annually to Abia’s Gross Domestic Product through increased agricultural output, tax revenues, and expanded economic activities among small and medium-scale businesses in the local value chain.

Also speaking during the visit, the Group Managing Director of Afrinvest, Ike Chioke, praised Governor Otti for insisting on a thorough evaluation process before entering into the partnership.

Chioke explained that the meeting followed earlier discussions held in the first quarter of 2025 between the Abia State Government and Presco Plc under the state’s Public-Private Partnership framework. He added that the delegation also visited to commend the governor for his commitment to careful due diligence.

Palm oil production once played a significant role in driving economic growth in Nigeria’s Eastern Region during the era of Michael Okpara. His farm settlement programmes boosted agricultural productivity and rural development across the region.

Over time, however, the sector declined due to reduced government investment and the country’s increasing dependence on crude oil.