Firm to invest $200m in Abia’s oil palm sector

Presco Plc Chairperson, Olakanmi Sarumi, disclosed this on Friday when the company’s management and Afrinvest visited Governor Alex Otti of Abia State in Nvosi, Isiala Ngwa South Local Government Area of the state.

Presco Plc, a leading agro-industrial oil palm company in West Africa, has announced its plan to invest $200 million in Abia’s oil palm sector.

The company’s Chairperson, Olakanmi Sarumi, disclosed this on Friday when the company’s management and Afrinvest visited Governor Alex Otti of Abia State in Nvosi, Isiala Ngwa South Local Government Area of the state.

Mr Sarumi said the proposed investment would develop oil palm plantations on about 14,086 hectares of a 20,000-hectare concession in Ozuitem, Abam, and Ulonna.

“Our task from the governor and the state is to establish a mutually beneficial relationship, facilitate land acquisition for Presco Plc, and provide security support to realise this development,” he said.

He also said the project was expected to create over 5,000 jobs, both directly and indirectly, across plantation operations, milling, logistics, and other support services.

Mr Sarumi hoped that the initiative would curb rural migration and spur community development.

He also said that the investment would boost agricultural output, support small and medium enterprises, and attract downstream industries reliant on palm oil derivatives.

“Our investment will add multi-billion naira annually to Abia State’s Gross Domestic Product (GDP) through agricultural output, tax revenues, and multiplier effects across SMEs and local value chains,” he said.

Mr Sarumi described the initiative as a continuation of the agricultural revolution pioneered by the former Eastern Nigeria Premier, late Michael Okpara, whose administration transformed the region into a leading oil palm producer.

He appealed to the Abia State Government to assist his organisation in facilitating the acquisition of the land for the project. He pledged that his company would pay the compensation in accordance with an agreed plan.

In a remark, the Group Managing Director of Afrinvest, Ike Chioke, said the visit followed discussions between the Abia State Government and Presco Plc in the first quarter of 2025 under the state’s Public-Private Partnership framework.

Mr Chioke lauded Mr Otti for insisting on a thorough evaluation before any partnership would be finalised and expressed confidence that the engagement would be fruitful.

Gov Otti’s remarks

Responding, Mr Otti commended the company for its thorough due diligence ahead of its proposed investment in the state’s oil palm sector.

He said that the plan aligned with the historic agricultural vision of Okpara, whose farm settlement schemes once made the defunct Eastern Region a national leader in palm oil production.

He recalled that the former region achieved national prominence in oil palm output through well-structured farm settlements and pledged to restore Abia’s lost glory in the sector.

He emphasised that the state’s fertile land and favourable topography make it ideal for large-scale oil palm plantations, positioning Abia as a key driver of agricultural growth, job creation, and economic prosperity.

“I’m happy that you went back to the days of Dr Michael Okpara, who set up farm settlements, including the Ulonna settlement.

“I think 14,000 hectares may just be a start with the quality of our land – you are likely to achieve one of the highest yields,” the governor said.

He confirmed that the Abia State Government was supportive of the investment, highlighting the project’s potential to create thousands of jobs and also boost Abia’s GDP.

“If you are employing over 20,000 people, directly and indirectly, this will significantly contribute to the economy.

“That’s what interests me – jobs for my people and a positive impact on the GDP,” he said.

He disclosed that the next step ought to be the drafting and signing of a Memorandum of Understanding to move the project towards implementation.

The governor further said that the Abia State Government would facilitate the land acquisition and ensure fair compensation to the host communities.

(NAN)