Abia State government is set to create more than 5,000 jobs through a proposed $200 million investment in palm oil production in partnership with Presco Plc, a major oil palm producer operating in Nigeria and Ghana.
Governor Alex Otti disclosed that the state government will soon sign a Memorandum of Understanding (MoU) with Presco Plc to launch a large-scale oil palm development project aimed at reviving the state’s agricultural economy and creating employment opportunities.
The governor made the disclosure while receiving a delegation from the company led by its chairman, Olakanmi Rasheed Sarumi, at his office in Nvosi, Isialangwa South Local Government Area.
According to the state government, the initiative is expected to generate more than 5,000 direct and indirect jobs across plantation operations, palm oil milling, logistics and several support services once the project becomes operational.
The planned investment will involve the development of a large oil palm plantation estimated at about 14,000 hectares as the first phase of the project.
Governor Otti described the initiative as a major step towards rebuilding Abia’s agricultural strength and using farming as a strategic tool for economic growth and job creation.
He said the partnership with Presco Plc aligns with the state’s vision to revive its historic role in palm oil production and restore the agricultural legacy of the old Eastern Region.
“In principle, we are in agreement with you. I am happy that you went back to history, to the days of Dr Michael Okpara, who actually set up these farm settlements in the southeast,” Otti said.
“I think it is a good way to start. I believe that 14,000 hectares may just be for starters, 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.”
The governor explained that Abia’s fertile soil and favourable landscape make the state suitable for large-scale agricultural investments, particularly oil palm cultivation.
He also assured the investors that the state government would support the project by facilitating land acquisition and ensuring adequate security for the operations.
According to him, the administration is committed to ensuring that host communities benefit from the project through proper compensation and inclusive development arrangements.
“We will facilitate the land acquisition and provide the necessary support to ensure that the investment succeeds,” Otti told the delegation.
He emphasised that the state has an existing policy framework designed to ensure that communities hosting major agricultural projects are adequately compensated and included in the development process.
The chairman of Presco Plc, Sarumi, said the company plans to invest about $200 million in palm oil production and processing facilities in Abia State as part of its expansion strategy.
He explained that the project would create significant employment opportunities while strengthening Nigeria’s palm oil value chain.
Sarumi said the investment would not only generate jobs but also stimulate broader economic activities in rural communities through supply chains, transportation and service businesses.
He noted that crude palm oil has numerous industrial applications, making the project capable of attracting downstream industries into the region.
“The initiative is expected to create more than 5,000 direct and indirect jobs across plantation operations, milling, logistics and other support services,” Sarumi said.
He added that the project would prioritise the employment of local youths in surrounding communities, a move expected to reduce rural-urban migration and improve economic opportunities in the area.
According to him, the development would also support small and medium-scale enterprises through supply contracts and other commercial activities linked to the palm oil value chain.
Sarumi disclosed that the company has already identified three possible locations in Abia State for the proposed plantation.
The areas include Ozuitem, Abam and Ulonna, which were selected after preliminary assessments of land suitability and agricultural potential.
He said the project aligns with the Abia State Government’s broader economic plan to transform the state into one of Nigeria’s leading industrial plantation clusters by 2032.
“Our task from you 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 during the visit, the Group Managing Director of Afrinvest, Ike Chioke, commended the Abia State Government for adopting a thorough evaluation process before entering into the proposed partnership.
Chioke said the meeting followed earlier discussions held between the Abia State Government and Presco Plc in the first quarter of 2025 under the state’s Public-Private Partnership framework.
He noted that the delegation’s visit was also to appreciate Governor Otti for his commitment to due diligence and transparency in attracting investment into the state.
Palm oil production once served as a major economic driver in Nigeria’s Eastern Region during the administration of former premier Michael Okpara.
His farm settlement programmes significantly boosted agricultural productivity and rural development across the region.
However, the sector experienced a decline over the years as government investment reduced and national economic priorities shifted towards crude oil.
The planned $200 million investment in Abia is expected to revive large-scale palm oil production in the state while creating thousands of jobs and expanding economic opportunities in rural communities.
