Okomu Oil grows Q1 profit to N34 billion as sales jump

Nigeria's palm oil sector is experiencing a remarkable earnings expansion, with two of Africa's largest publicly traded agribusiness firms posting exceptional financial results that signal strong momentum in the commodity space and renewed investor confidence in the sector.

Presco Plc, the leading integrated palm oil producer, has delivered a blockbuster full-year 2025 performance, reporting a pre-tax profit of N177.98 billion—a stunning 57.4% increase from N113.22 billion in 2024. This near-doubling of earnings reflects both operational efficiency gains and favorable commodity pricing that has defined the global palm oil market over the past year. The company's audited financial results underscore the sector's resilience and profitability even amid macroeconomic headwinds affecting broader Nigerian equities.

Complementing this strong year-end showing, Okomu Oil Palm has opened 2026 with impressive momentum, posting a pre-tax profit of N34.09 billion in its unaudited first-quarter results. This Q1 performance, marked by significant sales growth, demonstrates that the tailwinds benefiting the sector have carried into the new year, positioning both firms to sustain elevated profit levels throughout 2026.

## What's driving the palm oil profit boom?

The dual profit surge reflects three converging factors: rising global palm oil prices amid tight global supply conditions, improved operational efficiency at both firms following recent capital investments, and strong demand from both domestic food manufacturers and export markets. Nigeria's natural endowment—superior soil quality and favorable climate in the Niger Delta—gives these producers cost advantages over competitors in Southeast Asia, allowing them to expand margins when global prices firm up.

## How significant is this for Nigeria's economy?

These results matter beyond agribusiness headlines. Palm oil remains Nigeria's third-largest agricultural export by value and a critical foreign exchange earner. Presco and Okomu together account for roughly 40% of Nigeria's formal palm oil production. Their combined pre-tax profits of over N210 billion in the last 12 months represent substantial tax contributions to federal and state governments, plus employment for tens of thousands of Nigerians across farming, processing, and logistics.

## Why should investors watch this sector closely?

The agricultural commodity space has historically lagged in Nigerian investor portfolios, overshadowed by oil, banking, and conglomerates. However, these earnings inflections signal that agribusiness stocks may offer genuine alpha potential, particularly as global food security concerns keep commodity prices elevated and as local manufacturers (beverages, confectionery, cosmetics) increase backward integration into palm sourcing. Both firms trade on the Nigerian Exchange, offering retail and institutional investors exposure to hard-currency-earning export businesses with tangible asset bases.

The sustainability of these profit levels depends on maintaining operational discipline and hedging against palm price volatility. Yet the sector's fundamental strength—global demand, supply constraints, and Nigeria's competitive cost position—suggests that 2026 could be another strong year for Africa's palm oil champions.

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