Onome Amuge
Presco Plc, one of Nigeria’s leading edible oils companies, has taken a decisive step to consolidate its dominance in the country’s palm oil sector, acquiring 10,000 hectares of plantations across the Nsadop and Boki estates in Cross River State. The move comes just days after the company announced a $100 million injection from SIAT NV, signalling renewed investor confidence in the firm’s growth strategy and Nigeria’s broader agribusiness potential.
Presco said the acquisition would expand its production base, strengthen raw material security, and enhance processing capacity across its integrated value chain. The company emphasised that the estates would unlock additional agronomic potential, enabling higher throughput at its mills and refineries while supporting the country’s domestic edible oil demand.
“This acquisition is a decisive execution of the commitments we made to our shareholders. During the launch of our recent Rights Issue, we pledged to accelerate our plantation expansion and position Presco for its next phase of growth. Nsadop and Boki are strategically located estates that complement our existing operations and expand the scale required to power our mills and refineries at higher capacity,” said Reji George, Presco’s chief executive.
The 10,000-hectare expansion positions Presco to tap into one of the fastest-growing segments of Nigeria’s food economy. Palm oil remains a cornerstone of the nation’s edible oils market, where domestic demand consistently outpaces supply, leading to significant imports that weigh on foreign exchange reserves. By increasing its plantation base, Presco is aligning its growth strategy with national policy priorities, including import substitution, food security, and industrial self-sufficiency.
Presco also plans to apply its model of sustainable agriculture, community engagement, and responsible land stewardship to the new estates. The company intends to replicate its existing social investment framework, fostering job creation and supporting host communities to ensure a stable operating environment. This approach aligns with Nigeria’s broader push to encourage private-sector participation in rural development and inclusive agro-industrial growth.
The acquisition follows a period of strategic fundraising for Presco, with the recent capital injection from SIAT NV intended to accelerate expansion projects, modernise processing facilities, and enhance research and development capabilities. The infusion of foreign capital reflects growing confidence in Nigeria’s agribusiness sector, even as companies operate under challenges including infrastructure deficits, regulatory complexity, and currency volatility.
From a shareholder perspective, the acquisition is expected to deliver long-term value. Upgrading and integrating Nsadop and Boki into Presco’s operations is projected to generate productivity gains and profitability upside while reinforcing the company’s market leadership. Investors are likely to view the expansion as a tangible execution of the company’s growth strategy following the Rights Issue, signalling disciplined capital allocation and a focus on sustainable returns.
