Presco Plc is ramping up plans to further expand its footprint across West Africa in a move that could save the country scarce FX and potentially cut the import of edible oil and fat by 40 percent in Nigeria and 30 percent in Ghana.
“We’ll be saving the country a lot of foreign exchange due to import substitution,” said Felix O. Nwabuko, the Group CEO, SIAT Group, the parent company of Presco while addressing journalists after its 2024 Annual General Meeting held Tuesday in Lagos.
Nwabuko explained that a shortage of palm oil needed for food industries has seen an influx of the product’s imports to the tune of $600 million annually.
He believes Presco’s expansion strategy will mean “less and less will be imported” thereby saving the naira from undue pressure.
Presco announced the acquisition of Ghana Oil Palm Development Company Limited (GOPDC) and Saro Oil Palm in a total deal worth $171.6 million in a race to meet its broader expansion strategy and deepen market penetration.
In pursuit of sustained regional leadership, the company has set a new target to triple its area under cultivation, expand its footprint across West Africa and diversify its customer base to capture a larger share of Africa’s edible oils and fat market.
This growth strategy is designed to address a regional challenge of food security and drive shareholder value.
It also represents the first phase of its expansion roadmap and provides a strong foundation for regional scale, operational synergies and long-term profitability.
Presco has been on a profitability run in the last decade. The firm is now on track to surpass what was recorded in full year 2024 with half-year 2025 net income hitting N88.7 billion and revenue climbing to N198.7 billion.
The company more than doubled net profit to N77.7 billion last year, just as revenue was equally doubled to N207.5 billion.
In 2024, profit before tax surged 128.7 percent to N113.2 billion. Gross Profit rose by 120 percent to N142 billion, and EBITDA increased by 125.2 percent to N119.1 billion, underscoring the company’s strong operational discipline and ability to convert growth into shareholder value.
Earnings per share grew by 57.5 percent while Presco’s market valuation advanced 146 percent, reflecting strong investor confidence.
Shareholders approved a final dividend of N42.00 per 50 kobo share which amounted to N42 billion, payable on 19 August 2025, bringing returns in line with the company’s commitment to consistent value distribution.
“Our ambition goes beyond today’s results,” Nwabuko said. “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.”
Olakanmi Rasheed Sarumi, Presco’s chairman said the company has been able weather the storm of the worst economic crisis in a decade to report a “landmark performance” in 2024, demonstrating Presco’s resilience.
“As we expand our footprint in Nigeria and West Africa, we remain committed to delivering growth that is anchored in operational excellence, environmental stewardship, and shared prosperity with our stakeholders.”
