Nigeria Agriculture Sector 2026
A sector intelligence report on Nigeria's listed agriculture sector — profiling the NGX-listed agribusinesses driving crop production, processing, livestock feeds, and oil palm value chains.
Executive summary
The NGX-listed agriculture sector delivered a strong aggregate financial performance in FY2025, generating combined revenues of approximately ₦573bn — a 50.4% increase on the prior year — and combined net profit of ₦185bn from its two profitable members. The performance was almost entirely concentrated in the sector's mature oil palm operators: Presco Plc and Okomu Oil Palm Plc, which together accounted for approximately 92% of sector revenue and 100% of sector profitability. Both companies benefited from the confluence of elevated Global Crude Palm Oil (CPO)(averaging approximately $1,075/MT in 2025), a weaker naira through much of the year (full-year NFEM average approximately ₦1,518/USD), and continued plantation maturation that drove gross margins to historic highs of 73.2% and 70.4% respectively.
Against this backdrop of outperformance at the top tier, the four remaining covered companies — Ellah Lakes, FTN Cocoa Processors, Livestock Feeds, and Zichis Agro Allied — presented a sharply contrasting picture. All four either reported net losses, carried going-concern risk flags, or navigated material solvency or liquidity pressures during FY2025.
The sector's most consequential corporate event of the year — Ellah Lakes' ₦235bn public offer for the purpose of funding its ARPN acquisition — failed to meet minimum subscription thresholds in December 2025, leaving the company's strategic transformation agenda without a confirmed funding mechanism. FTN Cocoa's 311% revenue surge masked a gross loss driven by raw material cost inflation, while Livestock Feeds' landmark full repayment of ₦13.7bn in bank debt in October 2025 was achieved through inventory liquidation rather than operational improvement. Zichis Agro Allied completed its NGX Growth Board listing in January 2026 with strong underlying agricultural growth metrics, though related-party receivable concentrations from controlling shareholders represent a material earnings quality concern.
The year's macro context amplified the divergence between tier. In H1 2025, naira weakness was a structural tailwind for dollar-linked commodity producers. By Q4, the naira had appreciated from approximately ₦1,600 to ₦1,445/USD — reversing some of that advantage. The CBN's September 2025 MPR cut to 27.00% provided modest balance sheet relief for heavily leveraged companies, though the transmission to agricultural lending rates was limited. Food inflation decelerated sharply from above 35% in early 2025 to 10.84% by December, following the NBS's CPI methodology rebasing. Globally, cocoa prices collapsed from record highs of approximately $12,000/MT (April 2024) to approximately $5,700/MT by December 2025, significantly affecting FTN Cocoa's gross margin trajectory despite its strong revenue growth.
Looking into 2026, the sector enters a period of normalisation from a high base. CPO prices are expected to moderate from 2025 peaks as global supply recovers. Presco's January 2026 repayment of ₦163bn in acquisition financing materially improves its structural financial position. Livestock Feeds enters FY26 for the first time in several years without external bank debt. The resolution of FTN Cocoa's JPY 500m bond maturity in August 2026 will be the sector's most significant binary event, with outcomes ranging from balance sheet transformation to potential default. These dynamics are explored in detail across the subsequent sections of this report.
Key findings
NGX agriculture sector achieved record revenue and profitability in FY2025.
Combined revenues reached ₦573bn, a 50.4% increase, and net profit hit ₦185bn, primarily driven by Presco Plc and Okomu Oil Palm Plc.
Performance was highly polarised between mature oil palm operators and other companies.
Presco and Okomu thrived due to high CPO prices and a weaker naira, while Ellah Lakes, FTN Cocoa Processors, Livestock Feeds, and Zichis Agro Allied faced losses, going-concern risks, or liquidity pressures.
Ellah Lakes' major public offer for ARPN acquisition failed.
The ₦235bn public offer by Ellah Lakes to fund its ARPN acquisition did not meet minimum subscription thresholds in December 2025, leaving its strategic transformation unfunded.
FTN Cocoa's revenue surge was offset by raw material cost inflation.
Despite a 311% revenue growth, FTN Cocoa reported a gross loss of ₦686m, largely due to procuring cocoa beans at elevated prices as global cocoa prices declined.
Livestock Feeds significantly improved its balance sheet by repaying external debt.
The company liquidated ₦12.6bn of inventory to generate ₦15.2bn in operating cash flow, enabling the full repayment of ₦13.7bn in bank debt by October 2025, despite an operational loss.
Zichis Agro Allied demonstrated strong growth but with earnings quality concerns.
Zichis saw 134% revenue growth and high gross margins, but 100% of its trade receivables are from controlling shareholders, raising questions about earnings quality.
Presco's fully subscribed rights issue strengthened its financial position.
The ₦236.7bn rights issue in December 2025 was fully subscribed, with proceeds used to repay ₦163bn in acquisition financing in January 2026, materially improving its net debt.
The August 2026 maturity of FTN Cocoa's JPY bond is a critical event for the sector.
The resolution of FTN Cocoa's JPY 500m bond is the most significant binary event for the sector, potentially leading to balance sheet transformation or default, given its highly leveraged position.
| Variable | Jan’25 | Mar’25 | Jun’25 | Sep’25 | Dec’25 | 2025 Avg / Full-Year |
|---|---|---|---|---|---|---|
| CBN MPR | 27.50% | 27.50% | 27.50% | 27.00% | 27.00% | 27.38% |
| USD/NGN (NFEM) | ₦1,535 | ₦1,570 | ₦1,600 | ₦1,550† | ₦1,445 | ₦1,518 |
| CPI YoY (Headline)‡ | 34%* | 33%* | 31%* | 18.02% | 15.15% | 21–22%‡ |
| Food Inflation YoY‡ | 40%* | 38%* | 35%* | 16.87% | 10.84% | 18–20%‡ |
| AGO Diesel (₦/litre) | ₦1,300 | ₦1,350 | ₦1,400 | ₦1,277.81 | ₦1,401.63 | ₦1,350 |
| PMS Petrol (₦/litre) | ₦970 | ₦970 | ₦1,037 | ₦1,032† | ₦1,048.63 | ₦1,010 |
| Global CPO ($/MT) | $990 | $1,050 | $1,080 | $1,175 | $1,097 | $1,075 |
| Global Cocoa ($/MT) | $10,000 | $9,500 | $8,500 | $7,200 | $5,700 | $7,500 |
| Company | Primary Operations | Rev FY25 (₦bn) | Controlling Shareholder | Auditor |
|---|---|---|---|---|
| Ellah Lakes Plc | Oil palm cultivation (187ha), 5T CPO mill, piggery | 0.15 | Chuka Mordi / related parties | Olabode Akande & Co |
| FTN Cocoa Processors | Cocoa bean processing; export + local sales | 5.65 | OH Origins / OH Ecosystem (est. 43%) | BakerTilly Nigeria |
| Livestock Feeds Plc | Animal feed manufacturing; 4 mills nationally | 37.77 | UAC of Nigeria Plc (73.29%) | KPMG |
| Okomu Oil Palm Plc | Integrated oil palm + rubber; Edo State | 198.15 | Socfin Group, Luxembourg (62.6%) | Ernst & Young |
| Presco Plc | Oil palm group; Nigeria + Ghana (GOPDC) | 330.64 | SIAT SA, Belgium via Oak & Saffron (61.2%) | KPMG |
| Zichis Agro Allied Plc | Oil palm, poultry, aquaculture, feed mill | 0.68 | Chilla Entertainment (54%), Winners Invest. (22.65%) | V.O. Olafamoye & Co |
| Variable | Net Sector Effect | Company-Level Impact |
|---|---|---|
| Global CPO Price (+52% avg vs FY24) | Strongly positive for oil palm producers | OKOMUOIL, PRESCO: direct revenue uplift — combined ₦200bn+ revenue increase YoY. ELLAHLAKES: negligible at current production scale |
| Naira Depreciation H1 / Appreciation H2 | Mixed — net moderate positive for FY25 | H1 tailwind amplified CPO/cocoa revenues. H2 naira appreciation (₦1,600→₦1,445) partially reversed this gain in Q4. LIVESTKFD: mixed — depreciation raised import raw material costs |
| CBN MPR at 27.00–27.50% | Moderately negative — high cost of capital | PRESCO: high interest burden on acquisition financing (₦44.8bn finance costs FY25, now partially resolved via Jan-26 repayment). FTNCOCOA: bond priced in JPY/USD — limited CBN MPR sensitivity |
| Cocoa Price Decline ($12k→$5.7k) | Negative for cocoa processor | FTNCOCOA: revenue pressure on output prices offset by local sales growth. More impactful: raw material (bean) procurement at elevated prices created gross loss. Dec-25 price of $5,700 implies potential margin recovery in FY26 if sustained |
| Maize/Soy Cost Inflation | Sharply negative for feed manufacturer | LIVESTKFD: gross margin compressed from 15.4% to 6.2%. Maize to ~₦575,000/MT by Nov-25. Soybean $404/MT Sep-25. Raw material is ~94% of cost of sales |
| Diesel at ₦1,278–1,402/litre | Negative sector-wide; manageable for leaders | All plantation companies: farm operations and processing mills are diesel-dependent. OKOMUOIL, PRESCO: absorbed within 70%+ gross margins. ELLAHLAKES: disproportionate impact at low revenue scale |
| Food Inflation Deceleration (40%→11%) | Mixed — positive for input costs; neutral for revenue | Broad disinflation reduces the inflationary context supporting high CPO domestic pricing. Positive for LSF's customers' (poultry farmers') affordability, potentially supporting volume recovery in FY26 |
| Date | Event | Company | Significance |
|---|---|---|---|
| Jan’25 | Insider share disposal — 6m shares at avg ₦3.12 | ELLAHLAKES | Substantial shareholder (director Osaro Oyegun) sells 6,000,000 shares at average ₦3.12/share; disclosed per NGX Rule 17.15(d) |
| Feb’25 | Insider share disposal — 155.3m shares at avg ₦3.23 | ELLAHLAKES | Blackman & Co. Consultancy (substantial shareholder) sells 155.3m shares — largest single insider disposal in coverage universe during FY25 |
| Mar’25 | Insider share disposal — 11.4m shares at ₦3.22 | ELLAHLAKES | Blackman & Co. second disposal; total combined insider sales Jan–Mar 2025: ~172.7m shares at average ~₦3.22, realising approximately ₦556m |
| Jul’25 | EGM: ₦250bn equity raise authorised + D/E conversion | ELLAHLAKES | All resolutions passed; board authorised to raise capital and convert director/shareholder loans to equity; share capital increase approved |
| Aug’25 | Rights issue — 166.7m shares at ₦1,420 (PRESCO) | PRESCO | Fully subscribed; raised ₦236.7bn; SIAT SA (parent) participated to maintain 61.2% stake; proceeds used Jan-26 to repay ₦163bn acquisition debt |
| Nov’25 | Public offer opens — 18.8bn shares at ₦12.50 | ELLAHLAKES | SEC-approved offer targeting ₦235bn to fund ARPN acquisition; offer price ₦12.50 vs Jan-Mar 2025 insider disposal prices of ~₦3.12–3.23 |
| Dec’25 | Public offer extended to 19 Dec 2025 | ELLAHLAKES | SEC approved extension from original 5 Dec 2025 close date; company cited 'rising investor interest' |
| Jan’26 | NGX Growth Board listing at ₦1.81/share | ZICHIS | First agro-allied company to access the NGX Growth Board; IPO day close ₦1.99; current price ₦8.58 as at June 2026 — +374% from IPO |
| Feb’26 | Public offer closure — FAILED | ELLAHLAKES | Subscription did not meet minimum threshold; no shares allotted; all monies to be refunded; ₦235bn acquisition funding mechanism collapses |
SECTOR PERFORMANCE OVERVIEW: FY2025
How Did the Sector Perform Overall?
By aggregate revenue and profitability, FY2025 was the NGX agriculture sector's best year on record in absolute terms. Combined revenue grew 50.4% to ₦573bn, combined gross profit increased 62% to ₦384bn, and the profitable tier generated ₦185bn in net profit — all figures driven almost entirely by the two mature oil palm companies. However, aggregate metrics are misleading as a sector health indicator: the distribution of performance was highly polarised, with one end delivering exceptional results and the other carrying existential financial risk. A more accurate characterisation is that the sector's infrastructure companies — those with mature, producing plantations — thrived, while its development-stage and structurally challenged companies deepened financial stress.
Performance Tier Analysis
Tier 1: Mature/Profitable Operators — Okomu and Presco
Both Okomu Oil Palm and Presco Plc reported landmark financial results. Okomu's revenue of ₦198.2bn (+52.4% YoY) and net profit of ₦63.5bn represented its strongest performance in reported history, supported by a gross margin of 70.4% — approximately 770 basis points above the already-strong FY24 margin of 62.7%. Presco's group revenue of ₦330.6bn (+59.3% YoY) and net profit attributable to owners of ₦121.4bn were equally record-breaking, with a 73.2% gross margin reflecting the fully-integrated cost structure of a mature plantation-to-processing operator now consolidated across Nigeria and Ghana. The primary performance drivers for both companies were: (a) elevated global CPO prices averaging approximately $1,075/MT for 2025; (b) a generally weak naira through H1 2025 that amplified naira-denominated revenues on USD-referenced commodity sales; and (c) continued plantation maturation delivering incremental volume growth. Both companies generated operating cash flows materially in excess of their capital expenditure requirements, resulting in substantial free cash flow generation.
Tier 2: Early-Stage / Turnaround Operators — Ellah Lakes, Livestock Feeds, Zichis
Ellah Lakes generated its first meaningful agricultural revenue in FY2025 — ₦136.4m from oil palm (CPO and fresh fruit bunches) and ₦10.3m from livestock operations across the 17-month reporting period ended December 2025. While the 88.7% gross margin on initial CPO sales demonstrates the unit economics available at maturity, administrative and personnel costs of ₦2.28bn overwhelmingly exceed the ₦130m gross profit — reflecting a full corporate cost structure operating at pre-commercial scale. Net loss of ₦3.84bn for the period includes ₦1.70bn in aborted public offer costs. Livestock Feeds presents a more nuanced picture: revenue declined 9.4% to ₦37.77bn and gross margin collapsed from 15.4% to 6.2% as raw material costs — particularly maize and soybean — surged. However, a decisive operational action — the liquidation of ₦12.6bn of excess inventory — generated ₦15.2bn in operating cash flow, enabling the full repayment of ₦13.7bn in external bank debt in October 2025. Zichis Agro Allied delivered 134% revenue growth to ₦675.6m in FY25, underpinned by oil palm maturation, poultry scale-up and feed mill operations, with a 68.5% gross margin reflecting the favourable economics of direct farm-to-market agricultural production.
Tier 3: Distressed — FTN Cocoa
FTN Cocoa's FY2025 presents the most complex performance narrative in the coverage universe. Revenue grew 311% to ₦5.65bn — the highest growth rate in the sector — driven by an emergence of local cocoa butter sales (₦2.10bn in FY25 vs nil in FY24) alongside strong export growth (₦3.55bn vs ₦1.37bn). Yet the company reported a gross loss of ₦686m: cost of sales was ₦6.33bn, of which raw materials alone were ₦5.27bn — a 40-fold increase from ₦130m in FY24. The company appears to have procured significant cocoa bean inventory at elevated prices just as the global cocoa price began its sharp decline from record highs, resulting in a scissors effect of high input costs meeting normalising output prices. The underlying balance sheet remained heavily stressed: total liabilities of ₦21.6bn against equity of ₦543m, with a JPY 500m deep-discount bond (valued at ₦7.37bn) maturing in August 2026 and carrying no legally binding third-party settlement guarantee.
SECTOR STRUCTURE & COVERAGE UNIVERSE
What the NGX Agriculture Sector Actually Represents
MACRO ENVIRONMENT: WHAT SHAPED SECTOR PERFORMANCE IN FY2025
The Five Variables That Mattered Most
FINANCIAL PERFORMANCE DEEP-DIVE: COMPANY BY COMPANY
Okomu Oil Palm Plc (OKOMUOIL)
COMPARATIVE FINANCIAL ANALYSIS
Who Were the Best Performers and Why?
CAPITAL MARKETS ACTIVITY IN FY2025
Analytical Observations on Capital Markets Activity
CORPORATE GOVERNANCE & DISCLOSURE QUALITY
NCCG 2018 Compliance: Ellah Lakes
FORWARD OUTLOOK & KEY INDICATORS FOR 2026
Sector Outlook: FY2026
Frequently asked questions
Which companies primarily drove the NGX agriculture sector's strong performance in FY2025?
Presco Plc and Okomu Oil Palm Plc were the primary drivers, accounting for approximately 92% of sector revenue and 100% of sector profitability due to elevated CPO prices, a weaker naira, and plantation maturation.
What was the outcome of Ellah Lakes' public offer to fund the ARPN acquisition?
Ellah Lakes' ₦235bn public offer failed to meet minimum subscription thresholds in December 2025, leaving the company's strategic transformation agenda without a confirmed funding mechanism.
How did Livestock Feeds Plc manage its financial challenges in FY2025?
Livestock Feeds liquidated ₦12.6bn of excess inventory, generating ₦15.2bn in operating cash flow, which enabled the full repayment of ₦13.7bn in external bank debt by October 2025, positioning it debt-free on the banking side for FY26.
What is the most significant financial risk for FTN Cocoa Processors Plc in the near term?
The resolution of FTN Cocoa's JPY 500m deep-discount bond, maturing in August 2026, is the most significant binary event, with its solvency depending on this settlement.
What is the forward outlook for the NGX agriculture sector in FY2026?
The sector is expected to enter a period of normalisation with CPO prices moderating, potentially leading to a 30–40% lower combined revenue in FY26, though structural improvements for some companies and long-term tailwinds for Nigerian palm oil remain intact.