Abia, Firm Ready to Sign $200m Oil Palm Plantation Devt, Production MoU

Boniface Okoro in Umuahia 

The Abia State Government and an agro-processing firm are set to sign a $200-million-dollar Memorandum of Understanding (MoU) deal aimed at reviving oil palm plantation development and revolutionizing oil palm production and processing.

Abia State governor, Dr. Alex Otti, made this known when he met with a delegation of Presco PLC in his office.

Chairman of Presco PLC, Olakanmi Rasheed Sarumi, during a presentation at the meeting, disclosed the company was prepared to invest $200 million in palm oil production and processing in Abia State, adding that the firm intends to acquire 14, 000 hectares of land for the project.

Mr. Sarumi explained that establishing a major oil palm processing hub in Abia to serve the Southeast region would attract downstream industries, given the vast industrial uses of raw palm oil.

According to him, the initiative is expected to create over 5,000 direct and indirect jobs, particularly for local youths; across plantation operations, milling, logistics, and related support services and reduce rural-urban migration, and stimulate development in the host communities.

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

He 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.

He noted the project aligns with the vision of Abia State Government to transform the state into one of Nigeria’s top three industrial plantation clusters by 2032.

When fully operational, Sarumi revealed the investment would contribute billions in naira annually to the State’s Gross Domestic Product (GDP) through agricultural output, tax revenues, and expanded economic activities across small, medium-scale enterprises and local value chains.

“Our task to His Excellency 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 said.

Welcoming the delegation, Governor Otti said the two parties would soon sign an MoU to formalise the partnership before proceeding to the flag-off of the project.

“In principle, we are in agreement with you. I’m happy that you went back to history, to the days of Dr. Michael Okpara, who actually set up these farm settlements, including the Ulonna farm settlement.

“I think it’s a good way to start. I believe that 14,000 hectares (requested by Presco) may just be for starting, 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,” the governor said.

He assured his government was determined to restore Abia State to the golden era of the late Michael Okpara, when oil palm production was the economic mainstay of the then Eastern Region.

Otti also assured the delegation that government would facilitate land acquisition and provide the necessary security support.

Earlier, the Group Managing Director, Afrinvest, Dr. Ike Chioke, while commending the governor for insisting on a thorough evaluation process before any partnership is finalised, revealed the delegation’s visit followed discussions between 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 present during the meeting.