Onome Amuge
Presco Plc, a leading Nigerian agribusiness, is embarking on an expansion across West Africa with a strategic acquisition that could substantially reduce the region’s reliance on imported edible oils. In a deal valued at $171.6 million, the company has acquired Ghana Oil Palm Development Company Limited (GOPDC) and Saro Oil Palm as part of a broader plan to triple its cultivation area and deepen its regional footprint.
The acquisition is a direct response to a regional food security challenge and a growing import deficit. Felix O. Nwabuko, the Group CEO of SIAT Group, Presco’s parent company, highlighted the deal’s potential to generate substantial foreign exchange savings. He noted that Nigeria currently spends $600 million annually on palm oil imports. Presco’s expansion, he asserted, will lead to “less and less will be imported,” with a projected 40 per cent reduction in Nigeria’s edible oil and fat imports and a 30 per cent cut for Ghana.
The ambitious expansion is underpinned by a period of landmark financial performance for the company. Presco reported a healthy half-year 2025 net income of N88.7 billion on a revenue of N198.7 billion, putting it on track to exceed its record-breaking 2024 results. Last year, the company more than doubled its net profit to N77.7 billion and its revenue to N207.5 billion. Its operational strength was evident across the board, with profit before tax surging by 128.7 per cent, gross profit rising by 120 per cent, and EBITDA increasing by 125.2 per cent.
The growth has translated directly into shareholder value. Earnings per share grew by 57.5 per cent, and the company’s market valuation advanced 146 per cent, reflecting strong investor confidence. Shareholders approved a final dividend of N42.00 per share, amounting to a total payout of N42 billion.
According to Olakanmi Rasheed Sarumi, Presco’s chairman, the company’s ability to weather the storm of the worst economic crisis in a decade and report a landmark performance in 2024 demonstrates its resilience.
On his part, Nwabuko emphasised that the company’s vision extends beyond mere profitability. “Presco is building the future of Africa through agriculture. A future where we produce more of what we consume, reduce import dependence and create sustainable value chains that benefit farmers and the communities we are in,” he said.
Making for sustainable food security in Africa (2)