Okomu Oil Palm Company Plc delivered strong earnings growth in 2025, with revenue from palm products rising by more than 60 per cent. The company reported total revenue from palm products of N172.6 billion in 2025, representing a 60.5 per cent increase compared to the previous year, while profit growth was supported by stronger operational efficiency, export activity, and sustained demand across both domestic and international markets.
Speaking at the company’s 46th Annual General Meeting and 50th anniversary celebration held in Abuja recently, Chairman Gbenga Oyebode said Okomu Oil surpassed its previous year’s performance, recording significant growth in revenue and profitability across its major business segments.
The company’s cost of sales, however, jumped during the period, rising to N112.339 billion, an increase of 175.3 per cent over 2024, reflecting inflationary pressures, higher operating costs, and economic challenges affecting production and supply chains.
Despite the spike in costs, Okomu Oil recorded a gross profit of N123.346 billion, representing a 93 per cent increase over the previous year, while profit from continuing operations rose to N88.798 billion, up 103 per cent year-on-year.
The company also posted strong performance from its rubber operations, reinforcing the growing importance of diversification within its agricultural portfolio.
According to Oyebode, Okomu Oil generated a total turnover of N198.2 billion despite mixed macroeconomic conditions and lower rubber output during the year under review.
Consolidated cost of sales rose by 27.6 per cent, while consolidated gross profit climbed 79.5 per cent from N78.5 billion in 2024 to N141 billion in 2025.
Net profit from continuing operations increased to N57.9 billion from N39.9 billion recorded in the previous year, representing a 45 per cent rise.
“We surpassed our previous year’s performance, achieving significant growth in both revenue and profitability,” Oyebode said at the AGM.
He attributed the company’s strong financial performance to disciplined execution of strategy, operational efficiency, and the commitment of management and staff toward sustainable value creation.
The earnings performance comes at a time when many Nigerian manufacturers and agro-industrial firms continue to grapple with currency volatility, inflationary pressures, rising logistics costs, and higher energy prices.
However, industry analysts say companies with export exposure and strong plantation assets have been relatively better positioned to withstand economic shocks, particularly amid growing global demand for edible oils and agricultural commodities.
Shareholders are also expected to benefit from the company’s improved profitability.
Oyebode disclosed that the Board of Directors had already paid an interim dividend of N40 per share during the 2025 financial year and proposed a final dividend of N15 per share, bringing the total dividend payout for the year to N55 per share.
The proposed payout reflects the company’s strong cash generation and balance sheet position, while also reinforcing investor confidence in its long-term growth outlook.
Beyond financial performance, the company highlighted operational stability across its business locations during the year.
Oyebode said Okomu Oil maintained a stable and well-controlled security environment across its plantations, processing facilities, residential quarters, and administrative operations, allowing uninterrupted production activities throughout the period.
Security concerns have become increasingly important for agricultural operators across Nigeria, particularly those with large land assets and operations located in rural communities.
The AGM also marked a symbolic milestone for the company as it celebrated 50 years of operations in Nigeria’s oil palm industry.
Oyebode described the anniversary as a reflection of resilience, strategic discipline, and long-term corporate vision.
According to him, the company was established in 1976 as part of a Federal Government initiative aimed at revitalising Nigeria’s oil palm sector, beginning with a plantation covering 15,580 hectares within the Okomu Forest Reserve.
He noted that the privatisation of the company in 1990 and its subsequent listing on the Nigerian Stock Exchange transformed Okomu Oil into a commercially driven enterprise with stronger corporate governance structures and shareholder accountability.
“Since then, strong corporate governance, transparency and accountability have remained central to our operations,” he said.
Over the past five decades, the company has significantly expanded its plantation footprint and strengthened its export operations.
Oyebode stated that cultivated plantation size has increased to more than 34,000 hectares, while the company’s products are now exported to international markets, reflecting its evolution into a globally competitive agro-industrial business.
The company also highlighted its sustainability and host community engagement initiatives, noting that it currently partners with 29 host communities through investments in infrastructure, social programmes, and development projects.
Managing Director Graham Hefer said the company remains focused on further expansion of its oil palm plantations and continued employment generation, particularly for young Nigerians.
According to Hefer, Okomu Oil has grown from less than 15,000 hectares to more than 34,000 hectares of cultivated plantation over the last five decades, positioning it among Nigeria’s leading agro-industrial companies.
