Presco Plc has unveiled plans to invest an initial $200 million in Ondo State to establish large-scale oil palm plantations, a processing mill and a refinery, in a major boost to the state’s agricultural and industrial development drive.
The investment commitment was announced on Friday during a courtesy visit by the company’s management to the Governor’s Office in Akure, where Governor Lucky Orimisan Aiyedatiwa assured the investors of land, adequate security and accelerated approvals to facilitate the project’s seamless take-off.
Chief Executive Officer of Presco Plc, Mr Rasheed Sarumi, described the company’s expansion into Ondo State as a “homecoming”, saying the move marks Presco’s return to the South-West after years of operating outside the region.
“Coming to Ondo State is a sort of homecoming for us. Ondo State, from today, is part of the Presco Plc network,” he said.
Sarumi explained that the investment was inspired by the business-friendly environment created by the Aiyedatiwa administration.
He noted that Presco is a subsidiary of the SIAT Group, whose Group Chief Executive Officer, Mr Adewale Arikawe, hails from Ondo South Senatorial District.
Highlighting the significance of the investment, Sarumi said Nigeria currently records a deficit of almost one million tonnes of crude palm oil required for the production of edible oil, fats, soaps, creams and cosmetics, stressing that Presco’s expansion would contribute to closing the supply gap.
“Edible oil is one of the top four things people buy on the shelf when they go to the market every day, so it is essential that we should be able to produce it locally,” he said.
He added that Presco operates under the globally recognised Responsible Sustainable Palm Oil (RSPO) certification, which requires strict compliance with environmental, social and community engagement standards before operations can commence.
According to him, the company must secure the free, prior and informed consent of host communities, establish clear boundaries and implement community action plans, warning that failure to comply could result in the withdrawal of its RSPO certification.
He added that the company has operations in Nigeria, Ghana, the United States, China and Belgium, where the group’s headquarters is located.
Sarumi commended the Ondo State Government for the warm reception accorded his delegation, saying the seamless logistics reflected the state’s readiness to attract investors.
“There will be a mill there and there will also be a refinery here,” he said, explaining that the Ondo project forms part of the company’s long-term expansion strategy.
He described the proposed investment as one that would deliver shared prosperity to the company, host communities, Ondo State and the Federal Government through increased local production and reduced dependence on imports.
Responding, Governor Aiyedatiwa welcomed the investment, describing Presco as a globally recognised company whose presence would reinforce Ondo State’s status as a preferred destination for agricultural investment.
He noted that while Ondo currently accounts for about 40 per cent of Nigeria’s cocoa production, the arrival of Presco would further strengthen the state’s position as a major oil palm-producing hub.
The governor assured the company that the Ondo State Investment Promotion Agency would facilitate all necessary documentation and eliminate bureaucratic bottlenecks to ensure the speedy implementation of the project.
“I’ve already made up my mind that Presco must have a place there. We will be mapping out where we are going to give to you that will not be troublesome and will be safe,” he said.
Aiyedatiwa also assured the investors of adequate security, describing Ondo as one of the safest states in the country for agricultural investment.
“Your investment will be safe, and it will be shared prosperity at the end of the day,” he assured.
While fielding questions from journalists, the Group Chief Executive Officer of SIAT Group, Mr Adewale Arikawe, said the project aligns with Governor Aiyedatiwa’s economic transformation agenda.
“We are looking at an investment of about $200 million to start with. We do plantation, we do a fully integrated edible oil business, and that is what we have brought to the state,” Arikawe said.
He added that the investment would stimulate rural and agricultural transformation, deepen industrialisation, promote inclusive economic growth and create substantial value for Ondo State.
In attendance are the Secretary to the State Government, Dr Taiwo Fasoranti; the Chief of Staff to the Governor, Prince Segun Omojuwa; the Chief Executive Officer of the Ondo State Development and Investment Promotion Agency (ONDIPA), Barr. Emmanuel Omomowo; and the Chairman of OSAEC, Mr Wemimo Akinsola.
