Abia Set to Sign MoU with Presco on Palm Oil Investment – Gov. Otti

Abia State Governor, Dr. Alex Otti, has disclosed that the state government is preparing to sign a Memorandum of Understanding (MoU) with Presco Plc, a leading palm oil producer in Nigeria and Ghana, to invest in large-scale palm oil production in the state.

Otti made this known on Friday while receiving a delegation from Presco Plc, led by its Chairman, Olakanmi Rasheed Sarumi, at the Government House.

According to the governor, the next stage of the engagement will involve drafting and signing the MoU to formalise the partnership before the commencement of the project.

He noted that Abia’s rich agricultural heritage and favourable land conditions make plantation agriculture a strong avenue for economic growth and employment generation.

Otti explained that the proposed development of about 14,000 hectares of palm plantation would serve as a starting point, stressing that Abia possesses the fertile soil and suitable topography needed for high agricultural productivity.

“In principle, we are in agreement with you. I am pleased that you referenced the history of the late Dr. Michael Okpara, who established farm settlements such as the Ulonna Farm Settlement,” the governor said.

“I believe the proposed 14,000 hectares is only a starting point because the state is blessed with the quality of land and topography that can deliver very high yields.”

The governor reiterated his administration’s commitment to reviving Abia’s agricultural legacy, recalling the era of the late Michael Okpara when palm oil production served as a major economic driver in the former Eastern Region.

He also commended Presco Plc for conducting extensive due diligence and presenting a detailed proposal, assuring the delegation that the government would assist with land acquisition and provide adequate security for the project.

Otti further emphasised that the state government maintains a policy of paying fair compensation to host communities to ensure peaceful and mutually beneficial development.

Earlier, Presco Plc Chairman, Olakanmi Rasheed Sarumi, said the company is proposing an investment of about $200 million in palm oil production and processing in Abia State.

Sarumi said the investment aims to establish Abia as a major palm oil processing hub in the Southeast, noting that the project would attract downstream industries due to the wide industrial applications of palm oil.

He described the initiative as a modern continuation of the agricultural revolution initiated by Dr. Michael Okpara through his farm settlement programmes.

Sarumi added that the project is expected to generate more than 5,000 direct and indirect jobs across plantation operations, milling, logistics, and other support services, thereby creating opportunities for local youths and reducing rural-urban migration.

He disclosed that the company has identified three potential locations in the state — Ozuitem, Abam, and Ulonna — for the proposed palm plantation.

Sarumi also said the project aligns with the Abia State Government’s vision of transforming the state into one of Nigeria’s top three industrial plantation clusters by 2032.

According to him, once fully operational, the investment would contribute billions of naira annually to Abia’s Gross Domestic Product (GDP) through agricultural output, taxes, and increased economic activities among small and medium enterprises.

“Our goal is to build a mutually beneficial partnership with the Abia State Government, particularly in facilitating land acquisition and providing security support for the project,” he said.

“Our investment will add several billions of naira annually to the state’s GDP through agricultural production, tax revenues, and multiplier effects across SMEs and local value chains.”

Also speaking, the Group Managing Director of Afrinvest, Dr. Ike Chioke, commended Governor Otti for insisting on a comprehensive evaluation process before entering into any partnership.

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

He said the delegation’s visit was both to deepen engagement and to appreciate the governor for ensuring proper due diligence in the partnership process.

The meeting was attended by the Abia State Commissioner for SME and Industry, Mazi Mike Akpara.