Nigeria’s largest integrated palm oil producer, Presco Plc, has won shareholder approval to raise as much as ₦250 billion ($162.8 million) through a Rights Issue, positioning the company for its next phase of growth. The resolution, passed at the firm’s Annual General Meeting on August 19, 2025, authorizes the board to issue new shares, pursue acquisitions, and expand operations across West Africa.
The fundraising plan — which is still subject to regulatory clearance — is expected to support Presco’s ambitious growth program, including direct investments and potential acquisitions. Shareholders also granted management the flexibility to leverage debt financing, or a hybrid of equity and debt, to fortify the company’s balance sheet.
Dividends Reflect Investor Confidence
The capital raise coincided with dividend approvals that highlight investor confidence in Presco’s earnings capacity. Shareholders endorsed ₦26.30 per share for the 2023 financial year and ₦42 per share for 2024, totaling ₦68.3 billion ($44.47 million) in payouts.
In addition, directors were authorized to raise Presco’s share capital and allow existing shareholder loans or trade payables to count toward subscription payments — a move designed to widen participation in the Rights Issue.
A Stronger Presco Under Sarumi’s Leadership
Operating from Edo State and listed on the Nigerian Exchange, Presco oversees one of the most integrated agro-industrial systems in Africa: from plantations and mills to crushing plants, refineries, biogas production, and packaging units.
Since Rasheed Sarumi assumed chairmanship in May 2024, the company has rebounded sharply. For the first half of 2025, Presco posted ₦198.74 billion ($129.4 million) in revenue, more than doubling the ₦88.02 billion reported a year earlier. Net profit surged to ₦88.72 billion ($57.8 million), buoyed by strong demand for palm oil and refined products.
Sarumi — founder of Saroafrica Ltd. and a member of the Presidential Economic Coordination Council — has become a key figure in Nigeria’s agribusiness landscape, steering Presco’s transformation while pushing the boundaries of regional expansion.
Expansion Moves and Governance Scrutiny
Presco’s growth blueprint is already in motion. Last week, the company announced a $46 million acquisition of Saro Oil Palm Ltd., a subsidiary of Sarumi’s privately held Saro Africa International. The transaction is part of a broader $171.6 million expansion program that also includes entry into the Ghanaian market.
While the deal promises to boost production capacity and strengthen Presco’s regional presence, it has also raised questions around corporate governance in Nigeria’s agribusiness sector. With the chairman’s private interests intertwined with Presco’s expansion, investors are watching closely to see how the company balances its aggressive growth trajectory with transparency and accountability.
