Abia To Sign $200m MoU With Presco For Palm Oil Investment

Abia State governor, Alex Otti, has disclosed that the state government will soon sign a $200 million Memorandum of Understanding (MoU) with Presco Plc, a major oil palm producer operating in Nigeria and Ghana, to boost palm oil production in the state.

Otti made this known on Friday while receiving a delegation from the company led by its chairman, Olakanmi Rasheed Sarumi, at his office in Nvosi, Isialangwa South Local Government Area.

The governor said the next stage of the partnership would involve preparing and signing the MoU between the Abia State Government and Presco Plc to formalise the collaboration before the project is officially launched.

He highlighted Abia’s rich agricultural heritage, describing agriculture as a key pathway for economic growth and job creation in Nigeria.

Otti explained that the proposed development of a 14,000-hectare plantation could serve as the starting point for the investment, noting that Abia’s favourable topography and fertile soil could support high agricultural yields.

“In principle, we are in agreement with you. I am happy that you went back to history, to the days of Dr Michael Okpara, who actually set up these farm settlements in the southeast.

“I think it is a good way to start. I believe that 14,000 hectares may just be for starters, because like you rightly observed, we have the topography and we are blessed with the quality of land that would give you one of the highest yields,” Otti said.

The governor assured the investors that his administration was determined to restore Abia to the era of the late Michael Okpara, when oil palm production served as the economic backbone of the former Eastern Region.

He commended Presco Plc for conducting due diligence and presenting a comprehensive proposal to the state government.

Otti also assured the company that the government would assist in facilitating land acquisition and provide adequate security support for the project.

He added that the state maintains a long-standing policy of ensuring that host communities receive appropriate compensation to guarantee peaceful and mutually beneficial development.

Earlier, the chairman of Presco Plc, Olakanmi Rasheed Sarumi, said the visit was aimed at exploring opportunities to expand the company’s operations into Abia State.

Sarumi revealed that Presco Plc plans to invest $200 million in palm oil production and processing in the state.

He explained that the project would position Abia as a major palm oil processing hub in the South-East and attract downstream industries due to the wide industrial applications of crude palm oil.

Sarumi described the investment as a modern continuation of the agricultural transformation initiated by former Eastern Region premier, Michael Okpara, whose farm settlement programme significantly boosted agricultural productivity in the region.

He said the initiative is expected to create more than 5,000 direct and indirect jobs across plantation operations, milling, logistics and other support services.

According to him, the project would also employ local youths, reduce rural-urban migration and stimulate development in host communities.

Sarumi disclosed that the company had identified three possible locations in Abia State — Ozuitem, Abam and Ulonna — for the proposed palm plantation project.

He added that the initiative aligns with the Abia State Government’s vision to transform the state into one of Nigeria’s top three industrial plantation clusters by 2032.

Once operational, he said the investment would contribute billions of naira annually to the state’s Gross Domestic Product through agricultural production, tax revenues and expanded economic activities among small and medium-scale enterprises and local value chains.

“Our task from you and the state is to have this mutually beneficial relationship and facilitate the land acquisition for Presco Plc, as well as security support, to realise this development.

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

Also speaking, the group managing director of Afrinvest, Dr Ike Chioke, commended Governor Otti for insisting on a thorough evaluation process before entering into any partnership.

Chioke disclosed that the visit followed earlier discussions between the Abia State Government and Presco Plc in the first quarter of 2025 under the state’s Public-Private Partnership (PPP) framework.

He added that the delegation’s visit was also to appreciate the governor for his commitment to due diligence in establishing the proposed partnership.

Palm oil production was once a major driver of economic growth in Nigeria’s Eastern Region during the administration of former premier, Michael Okpara, whose farm settlement programmes boosted agricultural productivity and rural development across the region.

However, the sector declined over the years due to reduced government investment and increased focus on crude oil.