Otti announces Abia's readiness to sign $200 million palm oil production deal
The Governor of Abia State, Dr Alex Otti, says the state is ready to sign a Memorandum of Understanding (MoU) with Presco PLC; a market leader in oil production and
The Governor of Abia State, Dr Alex Otti, 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 worth $200million.
Governor Otti stated this in his office, while receiving in audience a delegation from the Presco PLC, led by its Chairman, Olakanmi Rasheed Sarumi.
Governor 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.
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“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," Governor 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.
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.
