Market News

By Chinwendu Obienyi

Nigeria’s leading oil palm producers, Presco Plc and Okomu Oil Palm Company Plc, have recorded a combined revenue of N329 billion in the first half of 2025, riding on the back of a more stable naira and cooling inflation.

The two agribusiness giants, both listed on the floor of the Nigerian Exchange Limited (NGX), defied macroeconomic headwinds and security challenges to post strong financial results between January and June 2025.

>span class="s2">According to the companies’ H1 2025 financial statements, Presco Plc led the charge with a half-year revenue of N198.74 billion, a 125 per cent jump from N88.02 billion recorded in 2024. The company’s profit before tax rose to N11.85 billion, driven by improved operational efficiency and higher global crude palm oil (CPO) prices.

Also, it’s profit after tax (PAT) grew to N88.72 billion from N38.88 billion, representing an increase of 128.2 per cent year-on-year (y/y).

In a similar trajectory, Okomu Oil recorded a revenue of N129.83 billion, up 73.1 per cent from N75.01 billion in H1 2024. The firm also posted a profit before tax of N67.05 billion from N29.27 billion, reflecting strong cost management and steady export earnings.

Speaking on the development, executives from both companies attributed the solid growth to the relatively stable exchange rate, improved productivity, and the gradual moderation of input costs following a decline in inflation.

The Managing Director,Presco Plc, Reji George, said Presco have delivered significant growth in earnings, sustained it’s investment in operations, and continued to build a healthy balance sheet.

“Our H1 2025 performance reflects the strength and discipline of our diversified business model. These results speak to the resilience of our team and the trust of our stakeholders.

Looking ahead, we are well-positioned to sustain this momentum, with our robust operational capacity and strategic initiatives expected to drive continued growth and value creation for our stakeholders”, George said.

In recent months, the naira has traded within the N1534–N1,600/$1 following the Central Bank of Nigeria’s tightening measures and increased FX inflows. Meanwhile, headline inflation, which peaked at over 33 per cent in early 2024, eased to 22.22 per cent as of June 2025, providing relief for producers grappling with surging costs in previous quarters.

Industry watchers say the improved macroeconomic environment, though tentative, has started to reflect in the performance of key non-oil sectors.

“These results show that agribusinesses can thrive with the right fundamentals—stability in currency, access to finance, and infrastructure,” said Temitope Ajayi, an agribusiness analyst. “It is a strong signal for investors looking at Nigeria’s real sector.”

Both companies have also benefited from rising global prices of crude palm oil (CPO), alongside their ongoing investments in value-added processing and backward integration. Nigeria, once a net exporter of palm oil, now imports about 25 per cent of its domestic consumption needs, creating a huge market for local producers.

Despite this, challenges remain. Security issues in farming communities, high logistics costs, and land tenure complications continue to affect operations across Nigeria’s agricultural sector. However, firms like Presco and Okomu have continued to invest in expanding plantation acreage, upgrading machinery, and improving yield per hectare.

Looking ahead, analysts remain optimistic. Chief Business Officer, Optimus by Afrinvest, Ayodeji Ebo, said, “If macroeconomic conditions remain relatively stable and reforms continue, we expect full-year revenues for both companies to exceed N700 billion”.

As Nigeria doubles down on reducing food and agro-import dependence, the growth trajectory of its top oil palm producers offers a promising example of what’s possible with the right policy and market conditions.