Abia State Governor Alex Otti has urged Presco Plc to commence its proposed oil palm investment at the government-owned Ulonna Farm Settlement while arrangements are made to secure additional land for the project.
Otti made the appeal on Thursday while receiving a delegation of the agro-industrial company, led by its Chairman, Rasheed Sarumi, at Government House, Umuahia.
The governor said the state already had about 4,200 hectares of land at Ulonna, which could serve as the starting point for the proposed investment, even as discussions continue over the acquisition of additional land.
“I think we can start from the known to the unknown. We have Ulonna Farm Settlement that belongs to the government. We have about 4,200 hectares at Ulonna,” Otti said.
He explained that beginning operations at Ulonna would enable the company to make progress while the government works towards securing the additional land required.
The governor acknowledged concerns among some host communities over the proposed use of their land, urging Presco to engage community leaders to address their fears and build confidence in the project.
He assured the company that his administration would facilitate access to the required land, stressing that the government was committed to ensuring the investment takes off.
Otti described Abia as an attractive destination for investors in the South-East and South-South, citing its skilled workforce, improving infrastructure and the government’s commitment to creating a business-friendly environment.
He also expressed readiness to sign the necessary memorandum of understanding (MoU), urging the company to resolve outstanding issues and commence operations without further delay.
The governor, however, stressed that the partnership should provide reasonable benefits for the state, including an equity stake and representation on the company’s board.
According to him, the government would contribute more than land to the partnership, providing stability, an enabling business environment and access to markets for the company’s products.
“Whatever you produce, Abia will take it and then export,” Otti said, underscoring the potential for the investment to strengthen the state’s economy.
Earlier, Sarumi commended the Otti administration for its understanding of business and support for the proposed investment, expressing confidence that Presco would establish a successful operation in Abia.
He said the company had spent seven months engaging relevant stakeholders to advance the project, adding that favourable investment conditions were critical to its decision-making process.
Sarumi disclosed that the proposed investment would cover two major locations: Ulonna Farm Settlement, where Presco intends to rehabilitate existing plantation land by clearing old trees and replanting, and community land at Ozuitem.
He identified approximately 12,000 hectares of community land at Ozuitem as part of the company’s proposed expansion plans.
The Presco chairman said the investment would require substantial capital expenditure and generate significant economic benefits, including an estimated 5,000 direct jobs, increased tax revenue and business opportunities for local suppliers and service providers supporting plantation operations.
The delegation included the Group Managing Director of Afrinvest, Ike Chioke.
Also present were the Commissioners for Agriculture, Cliff Agbaeze, and Lands, Chaka Chukwumerije; the Chief Executive Officer of Public-Private Partnership and Investment Promotion, Chinedum Chijioke; and other senior government officials.
