Contributions of oil palm nucleus estates to economic development: Situating the Presco Plc And Okomu Oil Palm Company’s experiences in Nigeria

Abstract

This study focuses on the contributions of Presco Plc and Okomu Oil Palm Company Plc  to the economic development of Nigeria.  Secondary data used were sourced from the Annual Reports and Accounts of both companies spanning ten years, 2010 to 2019. The data were analyzed using descriptive statistics such as mean, percentages, frequency tables and graphs. The results showed that both companies generate about 50,000 jobs annually. The value of wealth created through the efforts of the companies and employees averages N10 billion per annum and serves as sources of income to individuals, government and other stakeholders. Both companies exported goods worth over N30 billion thereby helping to generate foreign exchange for Nigeria. Presco and Okomu Oil Plc have also assisted in the provision of rural infrastructure worth over N 20 billion to their host communities. However, there were reported externalities associated with the companies’ operations – loss of natural forest, conflict between the companies and host communities as well as loss of biodiversity. Nonetheless, the companies have adopted best practices in line with Roundtable on Sustainable Palm Oil (RSPO) principles to mitigate negative effects of their operations. It is recommended that government should continue to provide greater enabling environment for nucleus oil palm industry to thrive through Central Bank of Nigeria guaranteed loans. Secondly, Presco and Okomu Oil should continue to operate responsibly in a way that externalities associated with their activities do not exceed the benefits accruing from their companies to the nation and host communities.