Abia to sign $200m MoU with Presco Plc for palm oil investment

The Alex Otti-led Abia State Government is set to sign a $200 million Memorandum of Understanding (MoU) with Presco Plc, a leading oil palm producer in Nigeria and Ghana, to develop palm oil production in the state.

Governor Otti disclosed this on Friday while receiving a delegation from Presco Plc, led by its Chairman, Olakanmi Sarumi, at his office in Nvosi, Isialangwa South Local Government Area.

He said the next stage of the partnership would involve formalising the collaboration through the MoU before launching the project. Highlighting Abia’s rich agricultural heritage, Otti described agriculture as a key driver of economic growth and job creation in the state.

The proposed project involves developing a 14,000-hectare palm plantation, which Otti said could be just the beginning given Abia’s fertile land and favourable topography for 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,” Otti said, adding that the government would support land acquisition, security, and host community engagement for the project.

Chairman of Presco Plc, Olakanmi Sarumi, said the company plans to invest $200 million in palm oil production and processing, aiming to position Abia as a major palm oil hub in the South-East and attract downstream industries.

He described the initiative as a modern continuation of the agricultural transformation pioneered by former Eastern Region Premier, Michael Okpara, whose farm settlement programme boosted regional productivity.

The investment is expected to create over 5,000 direct and indirect jobs across plantation operations, milling, logistics, and support services, while employing local youths, reducing rural-urban migration, and stimulating development in host communities.

Presco Plc has identified three potential locations for the plantation—Ozuitem, Abam, and Ulonna—aligning with Abia State Government’s vision to become one of Nigeria’s top three industrial plantation clusters by 2032.

Sarumi noted that the project would contribute billions of naira annually to Abia’s GDP through agricultural output, tax revenues, and increased economic activities among small and medium-scale enterprises and local value chains.

Also present, Dr Ike Chioke, Group Managing Director of Afrinvest, commended Governor Otti for insisting on thorough due diligence before entering into the partnership, emphasizing that the initiative was part of the state’s Public-Private Partnership framework discussions that began in early 2025.

Palm oil production, once a key driver of economic growth in the former Eastern Region under Michael Okpara, had declined over the years due to reduced government support and the shift of focus to crude oil. The new partnership aims to revive the sector and restore its contribution to Abia’s economic development.