Presco Plc Plans $200 Million Investment in Abia's Oil Palm Industry

Presco Plc, recognized as a leading agro-industrial player in West Africa’s oil palm market, has revealed its intention to invest $200 million in the oil palm sector of Abia State.

The announcement was made by the company's Chairperson, Olakanmi Sarumi, during a visit to Governor Alex Otti of Abia State in Nvosi, Isiala Ngwa South Local Government Area on Friday. This meeting also included representatives from Afrinvest.

Mr. Sarumi outlined that the planned investment would facilitate the development of oil palm plantations across approximately 14,086 hectares of a 20,000-hectare concession in the areas of Ozuitem, Abam, and Ulonna.

He stated, "Our role from the governor and the state is to nurture a mutually beneficial partnership, ease the land acquisition process for Presco Plc, and provide necessary security assistance to actualize this project."

The project is anticipated to generate over 5,000 jobs, both directly and indirectly, across various sectors including plantation operations, milling, logistics, and additional support services.

Furthermore, Mr. Sarumi expressed optimism that this initiative would mitigate rural-urban migration and encourage community growth.

He elaborated that the investment would significantly enhance agricultural productivity, support small and medium enterprises, and attract ancillary industries reliant on palm oil derivatives.

“Our investment will contribute multi-billion naira annually to the GDP of Abia State through increased agricultural productivity, tax revenue, and the positive ripple effects on local SMEs and value chains,” he remarked.

Highlighting the historical significance of the initiative, he referenced the agricultural revolution led by the late Michael Okpara, who previously positioned the region as a major oil palm producer.

Mr. Sarumi requested the assistance of the Abia State Government in facilitating land acquisition for the project, promising that compensation would be paid in line with an agreed plan.

Ike Chioke, the Group Managing Director of Afrinvest, noted that this visit was part of discussions held with the Abia State Government and Presco Plc earlier this year under a Public-Private Partnership framework. He praised Governor Otti for advocating thorough evaluations before finalizing any partnerships, expressing confidence that this engagement would prove advantageous.

In response, Governor Otti praised Presco for its diligent approach regarding their proposed investment in the oil palm sector.

He indicated that the initiative aligns well with the historic agricultural vision of Okpara, reminding attendees of how the former region gained national recognition in palm oil production through structured farm settlements. The governor vowed to restore Abia's former standing in the industry.

He emphasized that the region's fertile land and favorable terrain render it ideal for extensive oil palm plantations, further establishing Abia as a key player in agricultural advancement, job creation, and economic development.

Expressing satisfaction, he remarked, "I’m pleased that we are revisiting the principles set forth by Dr. Michael Okpara, who established our farm settlements, including the Ulonna settlement. I believe 14,000 hectares may just be the beginning, given the quality of our land – we can expect one of the highest yields."

Governor Otti confirmed that the Abia State Government supports the investment, emphasizing its potential to create thousands of jobs while boosting the state's GDP.

"If you are creating over 20,000 jobs, both directly and indirectly, this will greatly impact the economy. This is what interests me – job creation for our people and a positive effect on the GDP,” he noted.

He indicated that the next step would involve drafting and signing a Memorandum of Understanding to facilitate project implementation, reiterating the government's commitment to aiding in land acquisition and ensuring equitable compensation for local communities.