The Governor of Abia State, Dr. Alex Otti, has disclosed that the state government is ready to sign a Memorandum of Understanding (MoU) with Presco PLC to invest in palm oil production and processing in the state.
Presco PLC is a market leader in oil palm cultivation, production, and processing in Nigeria and Ghana.
Governor Otti made this known on Friday while receiving in audience a delegation from Presco PLC, led by its Chairman, Mr. Olakanmi Rasheed Sarumi, at the Government House in Umuahia.
According to the governor, the next step would be the preparation and signing of a Memorandum of Understanding between the Abia State Government and Presco PLC to formalize the partnership before proceeding to the official flag-off of the project.
Otti acknowledged the state’s strong agricultural heritage, noting that plantation agriculture remains a viable pathway for economic expansion, food security, and job creation in Nigeria.
He explained that the proposed development of a 14,000-hectare oil palm plantation could serve as a starting point, given Abia State’s favourable topography and fertile land capable of delivering high agricultural yields.
The governor further stated that the state government remains committed to supporting investments that generate employment, boost the 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 established the farm settlements, including the Ulonna Farm Settlement.
“I think it is a good way to start. I believe that 14,000 hectares may just be the beginning, because as 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.
Governor Otti assured that his administration is determined to restore Abia State to the golden era of the late Dr. Michael Okpara, when oil palm production served as the economic backbone of the then Eastern Region.
The governor commended Presco PLC for conducting thorough due diligence and for presenting a comprehensive proposal to the state government. He assured the delegation that the government would facilitate land acquisition for the project and provide the necessary security support to ensure its success.
He also reiterated that the state maintains a longstanding policy of paying adequate compensation to host communities to guarantee 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 that Presco PLC is proposing to invest about $200 million in palm oil production and processing in the state.
Sarumi noted that establishing Abia as a major palm oil processing hub in the Southeast would attract downstream industries, given the vast industrial uses of crude palm oil across multiple sectors.
He described the proposed investment as a modern continuation of the agricultural revolution initiated by former Premier of the Eastern Region, Dr. Michael Okpara, whose farm settlement programmes transformed agricultural production in the region.
He further disclosed that the initiative is expected to create over 5,000 direct and indirect jobs across plantation operations, milling, logistics, and related support services.
According to him, the project will provide employment opportunities for local youths, reduce rural-urban migration, and stimulate socio-economic development in the host communities.
The Presco chairman also revealed that the company has identified three potential locations in Abia State — Ozuitem, Abam, and Ulonna for the development of the palm plantation project.
Sarumi stated that the investment 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 added that once fully operational, the project would contribute billions of naira annually to the state’s Gross Domestic Product through agricultural output, tax revenues, and expanded economic activities across the value chain.
