Abia State Governor, Alex Otti has announced that the state government is ready to sign a Memorandum of Understanding (MoU) with Presco PLC for a major palm oil investment project aimed at boosting agricultural production and economic growth in the state.
The governor disclosed this on Friday, March 14, during a meeting with a delegation from Presco PLC led by its Chairman, Olakanmi Rasheed Sarumi, at the Government House. According to Otti, the partnership will be formalized through an MoU before the official launch of the proposed project.
Otti noted that Abia has a strong agricultural heritage and emphasized that plantation agriculture remains one of the most effective ways to stimulate economic expansion, create employment opportunities, and strengthen Nigeria’s agricultural sector.
The proposed project will begin with the development of about 14,000 hectares of oil palm plantation in the state. The governor expressed confidence that the state’s fertile land and favorable topography would support high agricultural yields, making Abia a suitable location for large-scale palm oil production.
He also referenced the agricultural legacy of former Eastern Region Premier, Michael Okpara, whose farm settlement programs helped transform agriculture in the region. Otti stated that the new partnership could help restore Abia’s historical leadership in oil palm production.
The governor further assured Presco that the state government would assist with land acquisition and provide security support to ensure the smooth implementation of the project. He also reiterated that Abia maintains a policy of providing fair compensation to host communities to ensure peaceful collaboration and sustainable development.
During the presentation, Presco Chairman Sarumi revealed that the company plans to invest $200 million in palm oil production and processing in Abia State. He explained that the investment is designed to establish Abia as a key palm oil processing hub in Southeast Nigeria.
Sarumi said the project is expected to generate more than 5,000 direct and indirect jobs across plantation operations, processing mills, logistics, and related services. The initiative is also expected to provide employment opportunities for youths, reduce rural-to-urban migration, and promote economic development in host communities.
According to him, the company has already identified three potential locations for the plantation project, including Ozuitem, Abam, and Ulonna.
He added that the investment aligns with the Abia State government’s broader plan to transform the state into one of Nigeria’s leading industrial plantation clusters by 2032. Once operational, the project is expected to contribute billions of naira annually to the state’s Gross Domestic Product through agricultural output, taxes, and increased economic activity across local businesses and supply chains.
Also speaking during the visit, the Group Managing Director of Afrinvest, Ike Chioke, commended Governor Otti for insisting on a detailed evaluation process before finalizing the partnership.
Chioke explained that discussions between the Abia State Government and Presco began in the first quarter of 2025 through the state’s Public-Private Partnership framework, and the visit was part of ongoing engagements to advance the investment plan.
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The meeting was also attended by Abia State Commissioner for Small and Medium Enterprises and Industry, Mike Akpara.
The proposed partnership is expected to strengthen Abia’s agricultural sector, attract agro-industrial investments, and revive the state’s long-standing reputation as a major hub for oil palm production in Nigeria.