Wedoany.com Report on Mar 16th, The Abia State Government in Nigeria has recently signed a $200 million Memorandum of Understanding (MOU) with Presco Plc, a major oil palm producer operating in Nigeria and Ghana, aiming to advance the state's palm oil industry. This agreement was announced when Governor Alex Otti received a delegation led by the company's Chairman, Olakanni Sarumi, at his office in Nwosi on Friday.
Governor Otti emphasized Abia State's rich agricultural heritage and outlined plans to develop a 14,000-hectare plantation as the initial phase of the investment. He stated, "In principle, we are in agreement with you. I am happy that you went back in history, back to the days of Dr. Michael Okpara, who actually established these farm settlements in the Southeast. I think it's a good start. I believe the 14,000 hectares may just be a starting point because, as you rightly observed, we have the terrain, and we have the quality of land that gives one of the highest yields." Otti also assured investors that the government would assist in facilitating land acquisition and provide adequate security support for the project, aiming to restore oil palm production as a pillar of the regional economy.
Presco Plc Chairman Sarumi stated that the company plans to invest $200 million in palm oil production and processing in Abia State. The project is expected to position the state as a major palm oil processing hub in the Southeast and attract downstream industries. Sarumi said, "Our mandate from you and the state government is to establish this mutually beneficial relationship and to facilitate land acquisition and security support for Presco Plc to achieve this development. Our investment here will add billions of Naira annually to Abia State's GDP through agricultural output, tax revenue, and the multiplier effect on SMEs and the local value chain." He added that this initiative is expected to create over 5,000 direct and indirect jobs and aligns with the Abia State Government's vision to become one of Nigeria's top three industrial plantation clusters by 2032.
Dr. Ike Chioke, Managing Director of Afrinvest Group, commended Governor Otti for his insistence on a thorough evaluation process before establishing the partnership. Chioke revealed that this visit was based on earlier discussions between the Abia State Government and Presco Plc in the first quarter of 2025 under a public-private partnership framework, aiming to thank the Governor for his commitment to due diligence. This palm oil industry development project is expected to bring long-term benefits to Abia State by enhancing agricultural productivity, increasing employment, and promoting economic growth.
