Abia State Governor Alex Otti has revealed plans to enter into a Memorandum of Understanding (MoU) with Presco Plc, covering a $200 million commitment toward large-scale palm oil cultivation and processing. The venture is projected to create upwards of 5,000 jobs and breathe new life into the state’s agricultural sector.
The governor made this known on Friday when he hosted a Presco Plc delegation at Government House. The group was led by the company’s Chairman, Olakanmi Rasheed Sarumi. Otti indicated that the next course of action involves drafting and executing an MoU to cement the partnership ahead of the project’s formal launch.
The governor noted that the investment fits squarely within his administration’s broader agenda to restore Abia’s standing as an agricultural powerhouse and reclaim its place as a significant contributor to Nigeria’s palm oil sector. He added that a proposed 14,000-hectare plantation would mark the project’s initial phase, pointing to the state’s favorable terrain and rich soil as key assets for achieving high crop 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 remarked, adding that the 14,000 hectares might only be a starting point given the land’s productive potential.
He further stressed his administration’s resolve to restore the agricultural prosperity that defined the former Eastern Region under late Premier Michael Okpara, a period when palm produce served as a cornerstone of the regional economy. The governor praised Presco Plc for its thorough preliminary assessment before bringing the proposal forward, and assured the delegation that the state would support land acquisition processes and guarantee security for the investment. He also reaffirmed the state’s standing practice of ensuring fair compensation for host communities to foster harmonious development.
In his remarks, Presco Plc Chairman Sarumi outlined the company’s intent to channel $200 million into palm oil production and processing in Abia, with the ambition of transforming the state into a leading processing hub across the South-East. He noted that the initiative would generate over 5,000 direct and indirect employment opportunities spanning plantation management, milling, logistics, and ancillary services, while also drawing in downstream industries given the broad industrial utility of palm oil. Sarumi framed the project as a modern revival of the agricultural movement championed by the late Okpara through his farm settlement programme, and identified Ozuitem, Abam, and Ulonna as candidate sites for the plantation.
“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.
Also speaking, Ike Chioke, Group Managing Director of Afrinvest West Africa, praised Governor Otti for insisting on a rigorous vetting process before committing to any partnership. He noted that the visit built on prior discussions between the Abia State Government and Presco Plc during the first quarter of 2025, conducted within the state’s Public-Private Partnership framework.
