Headline: Naira Stability and Easing Inflation Drive N329bn Revenue Surge for Nigeria’s Top Palm Oil Firms

Nigeria’s two largest oil palm producers, Presco Plc and Okomu Oil Palm Company Plc, recorded a combined N329 billion in revenue in the first half of 2025, buoyed by a more stable naira and easing inflation. Despite enduring macroeconomic and security challenges, the companies posted significant financial gains, showcasing the resilience of the agro-industrial sector amid Nigeria’s improving economic climate.

Presco Plc led the performance with N198.74 billion in revenue, up 125% year-on-year, while its profit before tax reached N11.85 billion. Profit after tax also soared to N88.72 billion, fueled by operational efficiency and favorable global crude palm oil (CPO) prices. Okomu Oil, on the other hand, grew its revenue by 73% to N129.83 billion, while profit before tax more than doubled to N67.05 billion, driven by strong cost control and sustained export income.

Company executives cited several growth enablers, including a stable exchange rate, easing input costs, and rising productivity. Presco’s Managing Director, Reji George, emphasized the company’s disciplined business model, long-term investments, and stakeholder trust as key pillars of their growth. Both firms continue to expand operational capacity and push for value-added production despite ongoing risks.

The broader macroeconomic environment also played a critical role. The naira stabilized between N1,534 and N1,600/$1, while inflation, which hit 33% in early 2024, dropped to 22.22% by June 2025. Analysts say these improvements are beginning to benefit non-oil sectors like agribusiness, attracting investor interest and boosting real sector confidence.

Despite positive momentum, challenges persist, including rural insecurity, logistics issues, and land tenure conflicts. Yet, with strong fundamentals, expanding plantations, and strategic reforms, the outlook remains bright. Analysts predict the companies could collectively surpass N700 billion in revenue by year-end, reinforcing their role in Nigeria’s push to reduce food imports and grow its agro-industrial base.

Source: The sun