Presco has been making waves in Nigeria’s palm-oil industry this year, riding the surge in global crude palm-oil (CPO) prices.
Together with Okomu, the country’s largest producers, the company has converted favourable market conditions into record-breaking profits.
Presco Leads The Surge
By September 2025, Presco and Okomu reported a combined net income of ₦117.11 billion, more than double the ₦80.09 billion earned in the same period last year.
Remarkably, their earnings for the first nine months almost matched the full-year profit for 2024, signalling a new era for the sector.
Analyst Kayode Eseyin of CardinalStone explained that rising global prices and strategic acquisitions drove Presco’s revenue.
“CPO prices rose worldwide, and Presco expanded capacity through acquisitions, which supported the topline,” he said.
Global Prices Drive Growth
Moreover, global forecasts suggest the rally will continue.
Analysts expect CPO prices to reach $1,200 per metric tonne by the end of 2025, up from roughly $1,000 today.
Tight supply, growing biodiesel demand in Southeast Asia, and easing trade tensions between the U.S. and China are all pushing prices higher.
Furthermore, Indonesia and Malaysia have increased domestic biofuel use, which has tightened global supply and opened opportunities for Nigeria.
Afrinvest’s 2025 Oil Palm Sector Update emphasised that the country could benefit from “elevated international prices and widening domestic supply gaps.”
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Locally, palm-oil prices surged almost 57% in 2024 to ₦420,906 per metric tonne, reflecting global trends, naira weakness, and rising import costs.
Consequently, industry revenue jumped to ₦337.7 billion, with Presco contributing ₦207.5 billion and Okomu ₦130.2 billion.
Strategic Moves Strengthen Position
In addition, the macroeconomic environment supported growth.
Inflation fell to 16.02%, the lowest in three years, while the naira strengthened nearly 10%, helping stabilise the market.
Presco further strengthened its market position by acquiring GOPDC and Saro Oil Palm, worth $171.6 million, supported by a ₦237 billion rights issue.
Managing Director Reji George described the move as “pivotal” for expansion, market reach, and financial stability.
Meanwhile, Okomu has pursued low leverage, which reduced interest expenses by nearly 10% year-on-year.
Analysts predict the company will clear all loans by 2029, further boosting profit margins and long-term sustainability.
Looking ahead, analysts expect growth to continue in 2026, although the pace may slow as supply chains stabilise.
“Profit will grow next year again, but not as significantly as this year,” Eseyin noted.
Despite a recent market downturn, investors remained confident in both companies’ shares.
Okomu stock rose 150% year-to-date, closing at ₦1,100, while Presco surged 205 percent to ₦1,450, rewarding early investors handsomely.
Overall, Presco, Okomu, and Nigeria’s palm-oil industry have demonstrated strategic growth, record profits, and resilience in 2025.
