Ellah Lakes To Acquire 12,000 Hectares of Oil Palm, Cassava Plantations

News in brief:

-Ellah Lakes announces the acquisition of over 12,000 hectares of land assets from Tolaram Africa and Valuestar Holdings.

-The move aligns with Nigeria’s food security objectives and is expected to close by December, pending regulatory approvals.

Ellah Lakes Plc has announced an agreement with Tolaram Africa and Valuestar Holdings to acquire 100% of Agro-Allied Resources & Processing Nigeria Limited (ARPN). The assets include 11,783 hectares of cultivated land—comprising over 6,000 hectares of oil palm plantations and associated infrastructure—more than 2,000 hectares of cassava plantation land, and an additional 10,000+ hectares of uncultivated land.

Strategic Outlook

In a press statement, the company described the acquisition as a strategic move designed to deepen its operational footprint, enhance efficiencies, and support Nigeria’s food security goals.

The acquired plantation’s age profile indicates that:

60% of the oil palms are over four years old and approaching peak productivity.

30% are between two and four years old.

10% are under two years old.

“This distribution underpins both current yield and future growth,” Ellah Lakes stated.

The acquisition was approved by shareholders during the company’s Extraordinary General Meeting in July 2025, viewed as a launchpad to expand Ellah Lakes’ processing capacity.

The company’s CEO, Chuka Mordi, previously noted that Ellah Lakes had embarked on a multi-billion-naira investment drive to rebuild operations—covering milling facilities, production infrastructure, and expansion projects. Following earlier announcements, the company’s stock price surged by over 300% as of September 2025.

Regulatory and Completion Timeline

Ellah Lakes has set a completion date of December 2025, by which it expects to have met all necessary regulatory requirements, including approval from the Federal Competition and Consumer Protection Commission (FCCPC).

Once finalised, the company plans to consolidate ARPN’s assets into its operations, delivering immediate benefits to scale and financial performance.

The acquisition strengthens Ellah Lakes’ vertically integrated agribusiness model, unlocking long-term opportunities for crop diversification and vertical integration. It also positions the company to better compete with industry leaders such as Presco Plc and Okomu Oil Palm Company.