The Governor of Abia State, Alex Otti, has announced that the state government is ready to sign a Memorandum of Understanding (MoU) with Presco Plc for a proposed $200 million investment in palm oil production and processing in the state.
Governor Otti disclosed this on Friday, March 14, 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 in the engagement between the state and the company is the preparation and signing of the MoU to formalise the partnership before the official flag-off of the project.
He noted that Abia State has a strong agricultural heritage and stressed that plantation agriculture remains a viable pathway for economic expansion, employment generation and sustainable development in Nigeria.
Otti said the proposed 14,000-hectare plantation development would serve as a starting point for the investment, noting that the state’s favourable topography and fertile soil make it ideal for large-scale agricultural production.
“In principle, we are in agreement with you. I’m happy that you went back to history, to the days of Michael Okpara, who actually set up these farm settlements, including the Ulonna farm settlement,” the governor said.
“I think it is a good way to start. I believe that 14,000 hectares 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,” he added.
The governor reiterated his administration’s commitment to restoring the state to the era when palm oil production was a major economic driver in the former Eastern Region under the leadership of the late Okpara.
He commended Presco Plc for conducting extensive due diligence and presenting a comprehensive investment proposal to the state government.
Otti assured the delegation that the state government would facilitate land acquisition for the project and provide the necessary security support to ensure smooth implementation.
He also emphasized that the government maintains a policy of paying adequate compensation to host communities to ensure peaceful and mutually beneficial development.
Earlier, the Chairman of Presco Plc, Sarumi, said the visit was part of the company’s plan to expand its operations into Abia State.
He announced that the company is proposing to invest $200 million in palm oil plantation development and processing facilities in the state.
Sarumi explained that the establishment of large-scale plantations and processing plants would position the state as a major palm oil processing hub in Nigeria’s South-East, attracting downstream industries that rely on palm oil as a raw material.
He described the proposed investment as a modern continuation of the agricultural revolution initiated by the former Eastern Region premier, Michael Okpara, whose farm settlement programmes significantly boosted agricultural production in the region.
According to him, the project is expected to create more than 5,000 direct and indirect jobs across plantation operations, milling, logistics and other support services.
He noted that the initiative would provide employment opportunities for local youths, reduce rural-urban migration and stimulate economic development in host communities.
Sarumi also revealed that Presco Plc has identified three potential locations in the state — Ozuitem, Abam and Ulonna — for the establishment of the palm plantation project.
He added that the investment aligns with the vision of the state government to transform Abia State into one of Nigeria’s top three industrial plantation clusters by 2032.
According to him, once fully operational, the project will 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,” Sarumi said.
“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.”
Also speaking, the Group Managing Director of Afrinvest, Ike Chioke, commended Governor Otti for insisting on a thorough evaluation process before entering into any partnership with investors.
Chioke explained 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 (PPP) framework.
He noted that the delegation’s visit was both an engagement and an appreciation of the governor’s diligence in ensuring that any partnership with the state is based on transparency, due diligence and long-term economic value.
