By Nworisa Michael
Alex Otti, Governor of Abia State, has revealed that the state government is set to sign a $200 million Memorandum of Understanding (MoU) with Presco Plc to boost palm oil production and processing in the state.
Governor Otti made the disclosure on Friday while receiving a delegation from the company led by its Chairman, Olakanmi Rasheed Sarumi, at his office in Nvosi, located in Isiala Ngwa South Local Government Area.
According to the governor, the next phase of the partnership will involve preparing and signing the MoU between the Abia State Government and Presco Plc to formally establish the collaboration before the project is launched.
Otti described agriculture as a critical pathway for economic growth and job creation in Nigeria, noting that Abia’s fertile land and favourable topography make the state well-suited for large-scale agricultural investments.
He explained that the development of a 14,000-hectare oil palm plantation is being considered as the starting point for the project.
“In principle, we are in agreement with you. I am happy that you went back to history, to the days of Michael Okpara, who established farm settlements across the Southeast,” the governor said.
“I think it is a good way to start. Fourteen thousand hectares may just be the beginning because, as you rightly observed, we have the topography and quality of land capable of producing some of the highest agricultural yields.”
Otti also assured the investors that his administration is committed to restoring Abia’s agricultural legacy, recalling that oil palm production once served as the economic backbone of the former Eastern Region during Okpara’s administration.
He commended Presco Plc for conducting extensive due diligence and presenting a comprehensive investment proposal to the state government.
The governor further assured the company that the government would assist in facilitating land acquisition and provide adequate security to ensure the project’s success. He added that the state has a policy of ensuring host communities are properly compensated to promote peaceful and mutually beneficial development.
Earlier, Presco Plc Chairman Sarumi said the company’s visit was aimed at exploring opportunities to expand its operations into Abia State.
He disclosed that the firm intends to invest $200 million in palm oil production and processing, a move expected to position Abia as a major palm oil processing hub in the Southeast.
Sarumi explained that crude palm oil has wide industrial applications and the proposed investment would likely attract downstream industries to the state.
He described the initiative as a modern continuation of the agricultural transformation begun under the leadership of former Eastern Region Premier Michael Okpara, whose farm settlement programme significantly improved agricultural productivity across the region.
According to Sarumi, the project is expected to generate over 5,000 direct and indirect jobs in plantation operations, milling, logistics, and other support services.
He added that the initiative would prioritise the employment of local youths, reduce rural-urban migration, and stimulate economic development in host communities.
Sarumi also revealed that the company has identified three potential locations for the proposed palm plantation project in Abia State Ozuitem, Abam, and Ulonna.
He noted that the investment aligns with the Abia State Government’s ambition to transform the state into one of Nigeria’s top three industrial plantation clusters by 2032.
“Our task from you and the state is to facilitate land acquisition for Presco Plc and provide security support so this development can be realised,” Sarumi said.
“Our investment 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 during the visit, the Group Managing Director of Afrinvest, Ike Chioke, commended Governor Otti for insisting on a thorough evaluation process before entering into the partnership.
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 framework.
Palm oil production was once a major economic driver in Nigeria’s Eastern Region, particularly during the administration of Michael Okpara, when farm settlement programmes boosted agricultural productivity and rural development.
However, the sector later declined due to reduced government investment and the country’s increasing dependence on crude oil revenue.
