By Obiabin Onukwugha
The Abia State government is set to boost palm production sector with the signing of a $200million Memorandum of Understanding with Presco Plc, a major oil palm producer operating in Nigeria and Ghana, to invest in palm oil production in the state.
Abia state governor, Alex Otti, disclosed this when he received a delegation from the company, led by its Chairman, Olakanmi Sarumi, at his office in Nvosi, on Friday.
The governor highlighted Abia’s rich agricultural heritage, stating that the proposed development of a 14,000-hectare plantation could serve as the starting point for the investment.
Otto, who describedagriculture as a key pathway for economic growth and job creation in Nigeria, pointed out that Abia’s favourable topography and fertile soil could support 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. I believe that 14,000 hectares may just be for starters, because like you rightly observed, we have the topography and we are blessed with the quality of land that would give you one of the highest yields,” he said.
The governor assured the investors that his administration was determined to restore Abia to the era of the late Michael Okpara, when oil palm production served as the economic backbone of the former Eastern Region. Otti also assured the company that the government would assist in facilitating land acquisition and provide adequate security support for the project.
He commended Presco Plc for carrying out thorough due diligence and presenting a comprehensive proposal to the state government, adding that the state maintains a long-standing policy of ensuring that host communities receive appropriate compensation to guarantee peaceful and mutually beneficial development.
Earlier, the Chairman of Presco Plc, Olakanmi Rasheed Sarumi, said they were in the governor’s office to explore opportunities that will expand the company’s operations into Abia State.
Sarumi said Presco Plc plans to invest $200 million in palm oil production and processing in the state, stating that the project will position Abia as a major palm oil processing hub in the South-East and attract downstream industries.
Sarumi described the investment “as a modern continuation of the agricultural transformation initiated by former Eastern Region Premier, Michael Okpara, whose farm settlement programme significantly boosted agricultural productivity in the region.”
He said the initiative is expected to create more than 5,000 direct and indirect jobs across plantation operations, milling, logistics, and other support services.
He added that the initiative aligns with the Abia State Government’s vision to transform the state into one of Nigeria’s top three industrial plantation clusters by 2032.
“Our task from you and the state is to have this mutually beneficial relationship and facilitate the land acquisition for Presco Plc, as well as security support, to realise this development.
“Our investment here will add multi-billion naira annually to Abia State’s GDP through agricultural output, tax revenues and multiplier effects across SMEs and local value chains,” he stated.
Also speaking, the Group Managing Director of Afrinvest, Dr Ike Chioke, commended Governor Otti for insisting on a thorough evaluation process before entering into any partnership.
Chioke disclosed that the visit followed earlier discussions between the Abia State Government and Presco Plc in the first quarter of 2025 under the state’s Public-Private Partnership framework.
He added that the delegation’s visit was also to appreciate the governor for his commitment to due diligence in establishing the proposed partnership.
