Nigeria’s biggest palm oil producer plans $100m investment in Ogun

Presco Plc, Nigeria’s largest listed oil palm producer, plans to invest about $100 million to establish operations in Ogun State as the country seeks to cut palm oil imports.

Adewale Arikawe, group chief executive officer announced the investment after meeting Ogun Governor Dapo Abiodun in Abeokuta recently.

Nigeria, which once accounted for 43 percent of global palm oil supply, is now a net importer with less than five percent of global output.

The investment aims to expand domestic production and reduce reliance on foreign supply, while creating jobs in processing, farming and logistics.

Presco currently operates plantations in Edo and Delta states.

Arikawe said Presco, whose operations span plantation development, processing, refining and the production of finished consumer products, selected Ogun after assessing its business environment, strategic location, infrastructure and policies aimed at attracting investment.

In a statement, he noted the company’s investment is expected to support the state’s agricultural transformation agenda, create thousands of direct and indirect employment opportunities, stimulate economic growth and further strengthen Ogun’s position as Nigeria’s leading industrial and agricultural investment destination.

“We have seen remarkable development in Ogun State, and we believe this is the next place to invest.”

“We also want to support the state’s agenda for agricultural transformation, economic development, job creation, and the building of an inclusive economy.”

In terms of the total investment, he explained that Presco is looking at a total of between $150 and $200 million.

In response, Bolu Owotomo, commissioner for Agriculture and Food Security, said Presco, with a market capitalisation of N2.68 trillion, recently raised substantial capital from the Nigerian capital market, and a significant portion of which would be invested in Ogun State.

The commissioner described the investment as another strong endorsement of Governor Abiodun’s deliberate economic policies, which have continued to position the state as the preferred destination for investors.

Owotomo noted that beyond expanding the state’s agricultural value chain, the investment would enhance food security, boost internally generated revenue, promote rural development and create sustainable jobs for thousands of Ogun residents.
The Presco investment is the latest in a growing list of high-value investments attracted by the state.

Last year, Presco announced that it secured a $100 million foreign direct investment (FDI) from Belgian agro-industrial firm SIAT NV.