Abia State Governor, Alex Otti Is Ready to Sign MoU with Presco PLC on $200m Oil Palm Investment 

Abia State Governor, Dr Alex Otti, OFR, says the State is ready to sign a Memorandum of Understanding (MoU) with Presco PLC, a market leader in oil production and processing in Nigeria and Ghana, to invest in oil palm production in Abia State.
Governor Otti stated this in his office while receiving in audience a delegation from Presco PLC led by its Chairman, Mr. Olakanmi Rasheed Sarumi.

The Governor explained that the next step would be the preparation and signing of the Memorandum of Understanding (MoU) between the State Government and Presco PLC to formally seal the partnership before proceeding to the flag-off of the project.
He acknowledged the State’s strong agricultural heritage, noting that plantation agriculture remains a viable pathway for economic expansion and job creation in Nigeria.
Governor Otti stated that the proposed 14,000 hectares plantation development could serve as a starting point, given Abia’s favourable topography and fertile land capable of delivering high agricultural yields.

He added that the State Government is committed to supporting investments that create employment, boost Gross Domestic Product (GDP), and positively impact the local economy.
“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 may just be for a start 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,” Governor Otti stated.

The Governor assured that his administration is determined to restore Abia State to the golden era of the late Dr. Michael Okpara, when oil palm production formed the economic backbone of the then Eastern Region.
He commended Presco PLC for its thorough due diligence and the comprehensive proposal presented to the State Government, assuring the delegation that the government would facilitate land acquisition and provide the necessary security support for the project.
Governor Otti also reiterated that the State maintains a longstanding policy of paying adequate compensation to host communities to ensure peaceful and mutually beneficial development.
Earlier in his presentation, the Chairman of Presco PLC, Mr. Olakanmi Rasheed Sarumi, explained that the visit was driven by the company’s interest in expanding its operations into Abia State. He announced the company’s proposal to invest 200 million dollars in palm oil production and processing in the State.
Sarumi said the initiative is aimed at establishing Abia as a major palm oil processing hub in the South-East, noting that the vast industrial uses of raw palm oil would attract downstream industries into the State.

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 transformed agricultural production in the region.
According to him, the project is expected to create over 5,000 direct and indirect jobs across plantation operations, milling, logistics and related support services, while providing employment opportunities for local youths, reducing rural-urban migration and stimulating development in host communities.
The Presco Chairman further disclosed that the company has identified Ozuitem, Abam and Ulonna as potential locations for the development of the palm plantation project.
Sarumi added that the project aligns with the vision of the Abia State Government to transform the State into one of Nigeria’s top three industrial plantation clusters by 2032.

He noted that once fully operational, the investment would contribute billions of naira annually to the State’s Gross Domestic Product (GDP) through agricultural output, tax revenues and expanded economic activities across small and 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,” Sarumi stated.
Earlier in his remarks, the Group Managing Director of Afrinvest, Dr. Ike Chioke, commended Governor Otti for insisting on a thorough evaluation process before any partnership is finalised.

He 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.
Chioke noted that the visit was both to deepen engagement with the State Government and to appreciate the Governor for the diligence taken in exploring the partnership.
The Commissioner for SME and Industry, Mazi Mike Akpara, was present during the meeting.