Abia State Governor, Dr Alex Otti, OFR, says the State is ready to sign a Memorandum of Understanding (MoU) with Presco PLC, a market leader in oil production and processing in Nigeria and Ghana, to invest in oil production in Abia State.
Governor Otti stated this on Friday, March 14th, in his office, while receiving in audience a delegation from the Presco PLC, led by its Chairman, Olakanmi Rasheed Sarumi.
Gov. Otti said that the next step would be the preparation and signing of a Memorandum of Understanding (MoU) between the State Government and Presco PLC to formalise the partnership before proceeding to the flag off of the project.
The Governor acknowledged the State’s strong agricultural heritage and noted that plantation agriculture remains a viable pathway for economic expansion and job creation in Nigeria.
The State Chief Executive stated that the proposed 14,000 hectares of plantation development could serve as a starting point, given Abia’s favourable topography and fertile land capable of delivering high agricultural yields, and added that the State government is committed to supporting investments that create employment, boost 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 set up these farm settlements, including the Ulonna farm settlement.
“I think it’s a good way to start. I believe that 14,000 hectares may just be for starting, 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,” Gov. Otti stated.
Governor Otti assured that his government is determined to restore Abia State to the golden era of the late Michael Okpara, when oil palm production was the economic backbone of the then Eastern Region.
The State Chief Executive, who commended Presco PLC for its thorough due diligence and the comprehensive proposal presented to the State Government, assured the delegation that the government would facilitate land acquisition and provide the necessary security support.
Gov. Otti reiterated that the State maintains a longstanding policy of paying adequate compensation to host communities to ensure peaceful and mutually beneficial development.
In his presentation, the Chairman, Presco Plc, Mr Olakanmi Rasheed Sarumi
explained that the visit was driven by Presco’s interest in expanding its operations into Abia State, announcing its proposal to invest 200 Million Dollars in palm oil production and processing in Abia State.
Mr Sarumi, who stated that establishing Abia as a major processing hub in the Southeast would attract downstream industries, given the vast industrial uses of raw palm oil, described the proposed investment as a modern continuation of the agricultural revolution initiated by former Eastern Region Premier, Dr Michael Okpara, whose farm settlement programmes transformed agricultural production in the region.
He further said that the initiative is expected to create over 5,000 direct and indirect jobs across plantation operations, milling, logistics, and related support services and provide employment opportunities for local youths, reduce rural-urban migration, and stimulate development in the host communities.
The Chairman noted that the company has identified three potential locations in Abia, including Ozuitem, Abam, and Ulonna, for the development of the palm plantation project.
Mr. Sarumi emphasised that the project 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 noted that once fully operational, the investment would contribute Billions of Naira annually to the State’s Gross Domestic Product (GDP) through agricultural output, tax revenues, and expanded economic activities across small, medium-scale enterprises and local value chains.
“Our task to His Excellency 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.
“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,” Sarumi stated.
Earlier in his speech, the Group Managing Director, Afrinvest, Dr Ike Chioke, while commending the Governor for insisting on a thorough evaluation process before any partnership is finalised, revealed that the delegation’s visit followed discussions between the Abia State Government and Presco Plc in the first quarter of 2025 through the State’s Public-Private Partnership framework.
Mr Chioke noted that the visit is a combination of the engagement and appreciation of the Governor for the due diligence taken in going into partnership with the State.
The Commissioner for SME and Industry, Mazi Mike Akpara, was present during the meeting.
Ctz. UKOHA, NJOKU UKOHA
Chief Press Secretary to the Executive Governor of Abia State.
March 13th, 2026.
