Zichis to acquire 221-hectare oil palm plantation from Amandel

Zichis Agro-Allied Industries Plc has begun the process of acquiring a 221-hectare oil palm plantation owned by Amandel Nigeria Limited to address shortages of fresh fruit bunches (FFB) and increase crude palm oil production.

The company disclosed this in a notice filed with the Nigerian Exchange (NGX), signed by its Company Secretary, Solomon Ogie Itsede.

According to the disclosure, the board approved management’s plan to commence the acquisition at a virtual meeting held on Friday, October 23, 2026.

The proposed acquisition is expected to provide a more reliable supply of fresh fruit bunches, a key raw material used in crude palm oil (CPO) production, while the company’s newly cultivated oil palm trees mature.

Zichis seeks to address raw material shortages

Zichis currently has 61 acres of fruiting oil palms, which are expected to yield approximately 244 tonnes of FFB in 2026. At an average oil extraction rate of 20%, the company estimates that the harvest will produce about 49 tonnes of crude palm oil.

The company said it was expanding its own cultivation capacity but had continued to face challenges sourcing fresh fruit bunches from local farmers.

Earlier in 2026, Zichis acquired 2,000 acres of land for new oil palm cultivation, with more than 300 acres already cultivated.

However, the newly planted palms will require another four to five years to reach maximum yield, making the proposed acquisition a potential source of supply in the interim.

• “These young palms take another 4-5 years to start yielding maximally, and sourcing FFB from local farmers has remained a challenge.
• “The Amandel acquisition gives Zichis a faster and more dependable source of fruit,” the company said.

Plantation includes mature and young palms

The proposed acquisition covers 221 hectares along Ago-Kona Elegbeke Road, off the Owo/Ifon Express Road, in Ose Local Government Area of Ondo State.

According to the disclosure, the estate comprises 74 hectares of fruiting oil palms and 54 hectares of young palms aged less than two years. The remaining 93 hectares have yet to be cultivated.

Zichis said securing additional FFB supplies would support higher crude palm oil output and allow it to expand into palm kernel oil (PKO) extraction.

• “The Company expects this to lift revenue in its oil palm business and improve its return on assets and return on equity in a short distance,” the disclosure stated.

The company has appointed Futureview Financial Services Limited as financial adviser to lead the transaction process.

The proposed acquisition remains subject to due diligence, agreement on final terms and all required approvals.

Acquisition follows strong first-half earnings

The planned expansion comes after Zichis reported a sharp increase in profitability for the first half of 2026, supported by revenue growth across its agricultural and poultry business lines.

• The company’s unaudited financial statements for the six months ended June 30, 2026, showed profit before tax of N478.7 million, up 448.6% from the corresponding period of 2025.
• Profit after tax also rose by 543.1% to N457 million.

Separately, the company’s board reviewed and approved its unaudited financial statements for the nine months ended September 30, 2026, at the October 23 meeting.

Zichis said the nine-month results would be released to the public on or before October 30, 2026.