NEWS
$200 Million Oil Palm Investment: Gov. Otti Moves to Revive Michael Okpara’s Agricultural Legacy as Presco Plc Targets Over 14,000 Hectares Across Abia
The Executive Governor of Abia State, Dr. Alex Chioma Otti, OFR, has reaffirmed his administration’s commitment to restoring Abia State to the agricultural prosperity once experienced during the era of the late Michael Okpara, when oil palm production formed the backbone of the economy of the defunct Eastern Region.
The Governor made the declaration on Friday at his office in Nvosi, Isiala Ngwa South Local Government Area, while receiving a high-powered delegation from Presco Plc, led by its Chairman, Olakunmi Sarumi.
During the visit, the delegation presented a major $200 million investment proposal focused on oil palm plantation development and agro-processing in Abia State. The proposed plantations are expected to span about 14,086 hectares drawn from a 20,000-hectare concession, covering areas in Ozuitem, Abam, and the historic Ulonna Farm Settlement located within Abia North and Central Senatorial zones.
Governor Otti commended the company for undertaking extensive due diligence before presenting its proposal, noting that the initiative aligns closely with the agricultural vision of the late Dr. Michael Okpara, whose farm settlement schemes transformed the old Eastern Region into a dominant force in palm oil production.
The Governor recalled that under Okpara’s leadership, the Eastern Region became a national leader in oil palm production through well-organised farm settlements and agricultural planning. He reiterated his administration’s determination to restore Abia’s lost prominence in the sector.
Highlighting the state’s natural advantages, Otti noted that Abia possesses fertile soil and favourable topography capable of supporting large-scale oil palm cultivation, stressing that such resources position the state as a major hub for agricultural growth, job creation, and economic prosperity.
“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 settlements.
“I think it’s 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 said.
Governor Otti, who confirmed that the state government is supportive of the investment in principle, emphasized that the project’s job creation potential remains a key factor that excites his administration.
According to him, initiatives that generate employment opportunities, expand the Gross Domestic Product (GDP), and stimulate economic activities are critical to the state’s development agenda.
“So, for us, if you are employing over 20,000 people, and I’m sure with the 14,000 hectares, you probably generate a whole lot more jobs directly and indirectly.
“That’s actually the area that interests me; creating jobs for my people, contributing to the GDP, and generally affecting the economy in a positive light. So, I would say that this is okay,” the Governor said.
The Governor further disclosed that the next stage of the partnership would involve the drafting and signing of a Memorandum of Understanding (MoU) to enable both parties move toward full implementation of the project.
He added that the state government would support the investment by facilitating land acquisition processes while ensuring that host communities receive adequate compensation.
“We have a history of paying adequate compensation, and that’s why you don’t hear any noise. Anywhere we go, we pay first, including roads that we are expanding,” the Governor stated.
Earlier in his presentation, the Chairman of Presco Plc, Mr. Sarumi explained that the company, one of the leading agro-industrial oil palm companies in West Africa plans to invest up to $200 million in Abia State as part of its long-term expansion strategy.
He disclosed that the proposed project would involve the establishment of oil palm plantations covering about 14,086 hectares within the 20,000-hectare concession across Ozuitem, Abam and Ulonna.
“Our task from 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,” Mr. Sarumi said.
Sarumi further revealed that the project is projected to generate over 5,000 direct and indirect jobs across plantation management, palm oil milling, logistics operations, and other support services.
According to him, the initiative would help reduce rural-to-urban migration while stimulating socio-economic development in host communities.
He added that the investment would significantly boost agricultural output in the state, strengthen small and medium enterprises, and attract downstream industries that depend on palm oil derivatives.
“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 stated.
Mr. Sarumi noted that the investment represents a continuation of the agricultural revolution initiated by the late Dr. Michael Okpara, whose administration transformed the former Eastern Region into a leading oil palm producing hub.
In his opening remarks, the Group Managing Director of Afrinvest, Ike Chioke, explained that the visit followed earlier engagements between the Abia State Government and Presco Plc during the first quarter of 2025 under the state’s Public-Private Partnership framework.
Chioke commended Governor Otti for adopting a careful and transparent approach to the investment process, particularly his insistence on a comprehensive evaluation before finalizing any partnership agreement.
“Our visit today is a combination of that engagement, and I want to appreciate Your Excellency for the approach you’ve taken; not to rush anything, but to insist that we do our due diligence first,” he added.