Presco Plc, Nigeria’s largest palm oil producer, has acquired Ghana Oil Palm Development Company (GOPDC) for $124.9 million and is set to purchase Siat Oil Palm Plantation (SOP) in Nigeria for $46.7 million.
The combined $171.6 million deal signals Presco’s boldest expansion drive yet, aimed at scaling local production and closing Africa’s palm oil supply gap.
With a market capitalisation of ₦1.48 trillion ($963.4 million) as of August 21, 2025, Presco said the GOPDC transaction was structured in phases, funded partly by a $64.9 million upfront payment and a proposed rights issue for the $59.9 million balance.
GOPDC, incorporated in Ghana in 1995, operates 21,000 hectares of plantations across Kwae and Okumaning estates, with 13,000 hectares developed and up to 6,000 outgrowers. The company runs processing facilities, including a 60 metric tonnes per hectare (MT/ha) palm oil mill, 60MT/ha palm kernel mill, and a 100 MT/day refinery, while employing 30,000 workers in peak season.
SOP, incorporated in 2019 in Nigeria, controls 22,500 hectares of oil palm plantations in Edo State under the Edo State Oil Palm Programme. Cultivation is expected to yield about 28,000 MT of fresh fruit bunches from 2026, with two palm oil mills already in the pipeline.
The acquisitions highlight Presco’s push to deepen its sub-Saharan footprint and reduce Nigeria’s dependence on palm oil imports.
Once the world’s top exporter in the 1960s, Nigeria now produces just 1.4 million MT annually against demand of more than three million, leaving a supply gap of nearly two million tonnes, according to the US Department of Agriculture.
Here are five key benefits of the deal, according to Presco’s explanatory statement:
Increased market share and customer base
Presco’s plantation size will expand by 37% to 59,760 hectares, boosting supply capacity and potentially cutting Nigeria’s import reliance by raising local output.
Currency diversification
About 41% of GOPDC’s revenues are in US dollars and euros, compared with Presco’s naira-heavy earnings. This foreign exchange mix will cushion the group against currency volatility.
Long-term organic growth and strategic land bank
The combined estates of GOPDC and SOP provide ready access to land, bypassing delays tied to new acquisitions and plantation development.
Economies of scale
The merger is expected to streamline operations and lower costs. SOP’s revenue is forecast to grow more than sevenfold between 2026 and 2027, making local output more competitive against imports.
Access to capital
A larger footprint enhances Presco’s fundraising capacity, potentially lowering financing costs and spurring wider sector expansion.
Presco’s financial strength backs the acquisition drive. Revenue surged by 125.8% year-on-year to ₦198.7 billion($129.4 million) in the first half of 2025, with pre-tax profit up 121.8% to ₦111.9 billion ($72.9 million), and assets rose 29% to ₦612.9 billion ($399.3 million), cementing its leadership over domestic rivals like Okomu oils.
If completed, the acquisitions will not only solidify Presco’s dominance in Nigeria but could also position it as a continental forerunner in palm oil production, boosting exports, cutting imports, and strengthening food security across Africa.
Note: Figures were originally reported in naira and converted at the official average exchange rate of ₦1,535.12/$1 for H1 2025, compared with ₦1,472.14/$1 in H1 2024.
