PRESCO EYES $100M INVESTMENT IN OGUN AS IT EXPANDS OIL PALM FOOTPRINT IN NIGERIA
By AgricNews Digest
Presco Plc is preparing to make one of the biggest private-sector bets on Nigerian agriculture this year with a planned
$100 million investment in Ogun State
The move is aimed at expanding domestic palm oil production, creating jobs, and cutting down Nigeria’s heavy reliance on imported edible oil.
The company is currently in discussions with the Ogun State Government to secure land for large-scale oil palm cultivation. If the deal goes through, the project will cover new plantations, a modern palm oil mill, and a structured out-grower program designed to bring thousands of smallholder farmers into Presco’s value chain. The idea is simple: increase local supply while giving farmers access to financing, improved seedlings, and a guaranteed market.
Ogun has quietly become one of Nigeria’s most attractive destinations for agribusiness. Its closeness to Lagos ports makes export and input logistics easier. The road network is stronger than in many other states, and the government has been aggressive with incentives for agriculture and agro-processing.
State officials have already signaled support. They say Ogun is ready to provide land, infrastructure backing, and a business-friendly environment for Presco to begin work. For the state, the investment aligns directly with its ambition to position itself as Nigeria’s leading producer of palm oil and other cash crops. For Presco, it offers room to grow outside its traditional base in Edo and Delta.
While final agreements are still being worked out, the investment is expected to be spread across four key areas. A significant portion will go into land development, including clearing and planting thousands of hectares of high-yield oil palm. Another major component is the construction of a new mill with higher extraction rates to process fresh fruit bunches more efficiently.
Presco also plans to roll out a large out-grower scheme. Under this model, smallholder farmers around the project area will receive financing, seedlings, training, and technical support. In return, they will supply their harvest to Presco’s mill. The company estimates the project will create both direct jobs on the plantations and indirect jobs in transport, services, and input supply for host communities.
Nigeria remains one of the world’s largest consumers of palm oil but still imports more than $500 million worth every year. That gap exists despite the country having ideal weather, soil, and labor for oil palm.
The push to close it is now being led by companies like Presco, Okomu Oil, and Dufil. Presco already runs extensive plantations in Edo and Delta and has grown through acquisitions in recent years. Adding Ogun to its footprint would significantly boost its milling capacity and give it more leverage to supply food manufacturers, soap producers, and export buyers.
Market conditions in 2026 are also favorable. Global palm oil prices have remained firm, government policy continues to favor import substitution, and financing from institutions like the CBN and Bank of Agriculture is more accessible than it was two years ago. Analysts say this combination is encouraging more long-term capital into the sector.
If finalized, Presco’s Ogun project will rank among the largest single agri investments announced in Nigeria in 2026. For Ogun farmers, it means better inputs, training, and a ready buyer. For the country, it’s another concrete step toward reducing import dependence and building a globally competitive edible oil industry.