Abia State and Company Set to Ink $200 Million Oil Palm Farm Deal

A landmark partnership is on the horizon, as the Abia State Government and an agro-processing firm are poised to sign a $200 million Memorandum of Understanding aimed at revitalizing oil palm plantation development and transforming oil palm production and processing.

This development was disclosed by Abia State Governor, Dr Alex Otti, during a meeting with a delegation from Presco PLC, where the company's investment plans were outlined.

Presco PLC Chairman, Olakanmi Rasheed Sarumi, presented the company's proposal, revealing that they are prepared to invest $200 million in palm oil production and processing in Abia State, with plans to acquire 14,000 hectares of land for the project.

Sarumi emphasized that establishing a major oil palm processing hub in Abia would serve the Southeast region, attracting downstream industries due to the vast industrial uses of raw palm oil, and creating a significant economic impact.

The initiative is expected to generate over 5,000 direct and indirect jobs, primarily for local youths, across various sectors, including plantation operations, milling, logistics, and related support services, thereby reducing rural-urban migration and stimulating development in host communities.

The company has identified three potential locations for the palm plantation project, including Ozuitem in Bende local government area, Abam in Arochukwu local government area, and Ulonna in Umuahia North local government area.

Sarumi described the proposed investment as a modern continuation of the agricultural revolution initiated by former Eastern Region Premier, Dr Michael Okpara, whose farm settlement programmes boosted oil palm production in Nigeria.

The project aligns with the Abia State Government's vision to transform the state into one of Nigeria's top three industrial plantation clusters by 2032, with the investment expected to contribute billions of naira annually to the State's Gross Domestic Product (GDP).

Once fully operational, the investment will have a significant impact on the state's economy, with Sarumi noting that it will add multi-billion naira annually to Abia State's GDP through agricultural output, tax revenues, and expanded economic activities across small and medium-scale enterprises and local value chains.

Governor Otti welcomed the delegation and expressed his agreement with the proposal, stating that the two parties would soon sign a Memorandum of Understanding to formalize the partnership before proceeding with the project's flag-off.

The governor referenced the state's history, noting that the proposal is a good starting point, and expressed his belief that the 14,000 hectares requested by Presco may be just the beginning, given the state's topography and quality of land.

Otti assured the delegation that his government is committed to restoring Abia State to its former glory, similar to the era of Dr Michael Okpara, when oil palm production was the economic mainstay of the then Eastern Region.

The governor also assured the delegation that the government would facilitate land acquisition and provide necessary security support for the project.

Earlier, the Group Managing Director of Afrinvest, Dr. Ike Chioke, commended the governor for insisting on a thorough evaluation process before finalizing any partnership, and revealed that the delegation's visit followed discussions between the Abia State government and Presco Plc in the first quarter of 2025 through the State's Public-Private Partnership framework.

The Commissioner for SME and Industry, Mazi Mike Akpara, was in attendance during the meeting, which marked a significant step forward in the partnership between the Abia State Government and Presco PLC.