The Abia State Government is set to formalise a $200 million investment partnership with Presco PLC aimed at revitalising oil palm cultivation and establishing a major processing hub in the state.
Governor Alex Otti disclosed this during a meeting with a delegation from the company at the Government House in Umuahia, where both parties agreed in principle to sign a Memorandum of Understanding (MoU) to drive the large-scale oil palm development project.
During the meeting, the Chairman of Presco PLC, Olakanmi Rasheed Sarumi, said the company is prepared to invest $200 million in oil palm production and processing operations in Abia State. He explained that the project would involve the acquisition of about 14,000 hectares of land for plantation development.
Sarumi noted that the company plans to establish a major oil palm processing hub in Abia to serve the Southeast region, adding that the wide industrial applications of palm oil could attract several downstream industries to the state.
According to him, the initiative is projected to generate more than 5,000 direct and indirect jobs, particularly for young people, across plantation operations, milling activities, logistics and related support services. He added that the development would help reduce rural-urban migration while stimulating economic growth in host communities.
He further revealed that three potential locations have been identified for the plantation project, including Ozuitem in Bende Local Government Area, Abam in Arochukwu Local Government Area and Ulonna in Umuahia North Local Government Area.
Sarumi described the proposed investment as a modern continuation of the agricultural transformation initiated by Michael Okpara, whose farm settlement programmes significantly boosted oil palm production in the former Eastern Region.
He added that the project aligns with Abia State’s ambition to emerge as one of Nigeria’s leading industrial plantation clusters by 2032, noting that the investment could contribute billions of naira annually to the state’s Gross Domestic Product through agricultural output, tax revenues and expanded economic activities across small and medium enterprises within the value chain.
Responding, Governor Otti welcomed the proposal and said the state government was ready to proceed with the partnership. He confirmed that the two parties would soon sign a Memorandum of Understanding to formalise the collaboration and commence implementation of the project.
The governor noted that Abia’s favourable topography and fertile land provide strong prospects for high oil palm yields, adding that the requested 14,000 hectares may only represent the initial phase of the project.
Otti also assured the investors that the state government would facilitate land acquisition and provide the necessary security support required for the successful execution of the project.
He reiterated his administration’s commitment to restoring Abia’s agricultural legacy, particularly the era of strong oil palm production that characterised the economic foundation of the former Eastern Region.
Earlier, the Group Managing Director of Afrinvest, Ike Chioke, commended the Abia State Government for undertaking a thorough evaluation process before finalising the proposed partnership.
Chioke explained that the engagement followed earlier discussions between the state government and Presco PLC in the first quarter of 2025 under Abia’s Public-Private Partnership framework.
The meeting was also attended by the Abia State Commissioner for Small and Medium Enterprises and Industry, Mike Akpara.
