Nigeria’s Palm Oil Sector Heats Up: The Brewing Bidding War Between Ellah Lakes & Presco
A quiet storm is gathering in Nigeria’s agribusiness space—one that could reshape the country’s palm oil industry and ignite a fierce competition between two ambitious players: Ellah Lakes Plc and Presco Plc.
Both companies are making bold moves, each planning to raise N250 billion to acquire strategic assets and expand operations. While these capital-raising efforts are aimed at growth and value creation, they also signal a likely bidding and trade war that could disrupt market dynamics in West Africa’s lucrative palm oil sector.
In its recently concluded Annual General Meeting (AGM), Ellah Lakes Plc has received shareholder approval to raise N250 billion in equity capital. The goal? To acquire new assets, expand its land bank, and solidify its transformation from a modest agriculture firm into a major integrated agribusiness.
Ellah Lakes is repositioning itself for scale and profitability. The fresh capital will help the company:
Expand its oil palm plantations, particularly in Edo and Ondo states.
Build and upgrade processing mills, including a 5-ton-per-hour palm oil mill and upcoming palm kernel oil facilities.
Convert debts to equity, strengthening its balance sheet and aligning shareholder interests.
Deepen its livestock (pork) and crops portfolio, creating a diversified revenue stream.
Ellah Lakes, once loss-making, is now targeting significant growth. By becoming vertically integrated—owning both plantations and processing facilities it aims to control costs, increase profit margins, and deliver long-term value to shareholders.
Projections suggest that, if well executed, this expansion would elevate Ellah’s market valuation by several multiples, positioning it among the top five players in Nigeria’s palm oil space by 2027.
While Ellah Lakes is scaling up locally, Presco Plc, already a heavyweight in the sector, is setting its sights on cross-border dominance. At its upcoming AGM scheduled for August 2025, Presco will seek shareholder approval to also raise N250 billion—a striking coincidence that hints at intensifying competition.
Presco has already begun raising funds through bonds and is planning a major acquisition that would change the landscape: the potential purchase of Ghana Oil Palm Development Company (GOPDC).
This acquisition would:
Give Presco access to over 21,000 hectares of oil palm plantation in Ghana.
Expand its processing and refining capabilities across borders.
Diversify its geographic footprint and reduce risk tied to local challenges.
Strengthen its export potential and pricing power in the ECOWAS region.
Presco is riding on strong fundamentals in Q1 2025, it reported:
Revenue of N93.8 billion (up 120% YoY)
Profit before tax of N58.6 billion
Total assets worth N548.6 billion
Analysts forecast that Presco’s earnings per share (EPS) will rise to over N121 in 2025, from N76 in 2024, driven by higher production volumes, favourable commodity prices, and operational efficiency.
The Brewing Battle: Trade War or Market Evolution?
With both companies targeting the same capital figure N250 billion investors are watching closely. Could this trigger a bidding war for strategic assets, land, or processing contracts? Or will it lead to a new era of innovation and consolidation in Nigeria’s agribusiness?
The stakes are high if these plans succeed, Nigeria’s palm oil industry could witness a new duopoly, with Ellah Lakes and Presco vying for dominance in production capacity, market share, and export reach.
For investors, this emerging rivalry opens up new opportunities and risks:
Ellah Lakes offers a growth story from the ground up ideal for long-term investors seeking value creation from a turnaround narrative.
Presco provides stability and aggressive expansion a more mature play with strong financials and dividend history.
The coming months will reveal how these capital raises play out, but one thing is clear: Nigeria’s oil palm sector is entering a new chapter, and shareholders in both firms would be the big winners if execution matches ambition. #Nigeria’s Palm Oil Sector Heats Up: The Brewing Bidding War Between Ellah Lakes & Presco#
