Two of Nigeria’s leading agricultural firms, Presco Plc and Okomu Oil Palm Company Plc, have reported a combined profit growth of 156.48 per cent in the fourth quarter of 2024, despite prevailing economic challenges......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
The impressive surge in profits is largely attributed to inflationary pressures and the depreciation of the Naira, which have driven up the prices of agricultural commodities, including palm oil.
These macroeconomic factors have contributed to increased revenue for both companies, reflecting strong market demand and favorable pricing conditions.
According to financial statements tracked by THE WHISTLER, the after-tax profit of both companies rose to N138.552bn in Q4 2024, up from N54.024bn in the corresponding period of 2023.
Presco and Okomu Oil collectively recorded a revenue increase of 85 per cent, with total earnings rising from N177.406bn in 2023 to N328.215bn in 2024.
A closer look at the financial reports reveals that Okomu Oil Plc increased its profit after tax by 61.92 per cent, reaching N34.273bn in Q4 2024, up from N21.167bn in 2023. The company generated N107.538bn in revenue from the Nigerian market and N22.522bn from export sales, bringing total revenue for the period to N130.060bn.
On the other hand, Presco Plc’s after-tax profit saw an even more remarkable surge of 217.33 per cent, rising from N32.861bn in 2023 to N104.279bn in 2024.
The company reported a 93 per cent growth in total sales revenue, reaching N198.155bn, with N179.154bn coming from the domestic market and N18.996bn from sales in Ghana.
The strong financial performance of both companies comes against the backdrop of rising inflation and currency depreciation. The continued weakening of the Naira, combined with macroeconomic inflationary pressures, has significantly impacted food prices in Nigeria.
Despite Nigeria’s vast potential in the palm oil sector, the country continues to struggle with production capacity due to over-reliance on oil and gas as primary revenue sources. This has limited its ability to meet growing global demand for palm oil.
While Presco Plc and Okomu Oil Plc remain key players in the industry, Nigeria’s palm oil sector is largely dominated by smallholder farmers and semi-mechanized processors, who account for 95 per cent of total domestic production.
The industry’s growth is dependent on addressing critical challenges faced by these stakeholders, including access to financing, modern processing equipment, and efficient supply chain networks.
To boost domestic production, reduce dependence on imports, and enhance the quality of palm oil, Nigeria must implement policies that support local farmers, improve processing technology, and promote investment in the agricultural sector.
By addressing these structural bottlenecks, the country can strengthen its position as a leading palm oil producer in Africa, drive economic diversification, and improve food security.