Otti seals $200m palm oil deal, targets Abia 5,000 jobs

By Steve Oko

Abia State Governor, Alex Otti, has disclosed that the state government is set to sign a Memorandum of Understanding (MoU) with Presco Plc for a $200 million investment in large-scale palm oil production and processing, a move expected to generate over 5,000 jobs and revive the state’s agricultural economy.

Governor Otti announced this 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 step will be the preparation and signing of an MoU to formalise the partnership before the official flag-off of the project.

Otti said the investment aligns with the state government’s vision to restore Abia’s agricultural strength and reposition the state as a major player in Nigeria’s palm oil industry.

He noted that the proposed 14,000-hectare plantation would serve as the starting point for the project, stressing that Abia’s favourable topography and fertile land make it suitable for high agricultural yields.

“In principle, we are in agreement with you. I’m happy that you went back to history, to the days of Michael Okpara, who established the farm settlements, including the Ulonna Farm Settlement,” Otti said.

“I believe that 14,000 hectares may just be for a start because we have the right topography and quality of land capable of delivering some of the highest yields.”

The governor reiterated that his administration is determined to return Abia to the agricultural golden era of the former Eastern Region under Okpara, when palm produce was a major economic driver.

He commended Presco Plc for conducting thorough due diligence before presenting its proposal and assured the delegation that the state government would facilitate land acquisition and provide security for the investment.

Otti also emphasised that the state maintains a long-standing policy of paying adequate compensation to host communities to ensure peaceful and mutually beneficial development.

Earlier, Presco Plc Chairman, Sarumi, said the company plans to invest $200 million in palm oil production and processing in Abia, with the goal of turning the state into a major processing hub in the South-East.

He explained that the project would create more than 5,000 direct and indirect jobs across plantation operations, milling, logistics and related services, while also attracting downstream industries due to the wide industrial applications of palm oil.

Sarumi described the initiative as a modern continuation of the agricultural revolution initiated by the late Okpara through the farm settlement scheme.

According to him, the company has already identified Ozuitem, Abam and Ulonna as potential locations for the plantation project.

“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.

Speaking also, the Group Managing Director of Afrinvest West Africa, Ike Chioke, commended the governor for insisting on a comprehensive evaluation process before finalising any partnership.

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

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