In a significant boost for Nigeria’s agro-industrial sector, Presco Plc, a leading vertically integrated oil palm producer, has announced the successful securing of a $100 million Foreign Direct Investment (FDI). The capital injection comes from an international private equity firm and is earmarked for a large-scale expansion of the company’s operations in Edo State.
The landmark deal represents one of the largest single FDI infusions into Nigerian agriculture in recent years. It underscores growing international confidence in the country’s agro-allied sector and aligns with national priorities for food security, import substitution, and export diversification.
Fueling Growth from Plantation to Product
According to company sources, the $100 million will be deployed to finance a multi-pronged expansion strategy:
- Plantation Development: Significant portions of the fund will be used to cultivate and develop new oil palm plantations, increasing Presco’s total cultivated land bank.
- Capacity Expansion: A core focus will be on scaling up processing capabilities at its facilities. This includes increasing output of crude palm oil (CPO), palm kernel oil (PKO), and other value-added derivatives.
- Downstream Integration: The investment may also support further downstream activities, such as refining and fractionation, which would allow Presco to capture more value within its production chain and serve broader market needs.
“This investment is a transformative milestone for Presco,” a company representative stated. “It provides us with the strategic capital to accelerate our growth plans, enhance efficiency, and strengthen our position as a key player not just in Nigeria, but in the global oils and fats market.”
Economic Ripple Effects for Edo State and Nigeria
The expansion project is expected to generate substantial socio-economic benefits for Edo State and the Nigerian economy at large:
- Job Creation: Hundreds of new direct jobs in agriculture, processing, and technical roles are anticipated, with thousands more indirect employment opportunities in supporting services and logistics.
- Community Development: The project will likely spur infrastructure improvements and community development initiatives in the host areas.
- Reduced Import Bill: By increasing domestic production of vegetable oils, the expansion directly contributes to reducing Nigeria’s annual multi-billion dollar food import bill.
- Export Potential: With increased scale and efficiency, Presco is poised to boost its export earnings, generating much-needed foreign exchange for the country.
Investor Confidence and Market Outlook
For shareholders and the market, the FDI is a powerful positive signal. It validates Presco’s business model and growth trajectory while providing non-dilutive growth capital. Analysts expect the news to reinforce investor confidence in Presco’s stock and in the agro-industrial segment as a whole.
The investment highlights a clear trend: cash-generative, scalable agricultural businesses with strong management are increasingly attractive to international investors seeking exposure to Africa’s growth story.
