Adade And Ada Okungbowa


Adade and Ada-Okungbowa

Journal of Agricultural Sciences

9(3), pp. 268-277, 2019


©2019, the copyright of this article is retained by the author(s)




Performance of
Publicly Quoted Agricultural Ventures in Nigeria: The Case of Presco PLC and
the Okomu Oil Palm Company PLC


1Adade, B.F., 2Ada-Okungbowa, C.I.


1 Cambridge International Advanced Level Programme, Word of
Faith Schools, G.R.A, Benin City, Nigeria

2 Department
of Agricultural Economics and Extension Services, University of Benin, Benin





Article No.:

Type: Research

DOI: 10.15580/GJAS.2019.3.053019104



Agribusinesses are known to be drivers of economic development in
developing nations. Yet little research has been carried out to examine the
historical performance (productivity and financial) of oil palm nucleus
estates in Nigeria.  This study
examines how publicly quoted oil palm companies in Nigeria performed over
the period, 2011 to 2016.  Several
indicators of company success (including productivity measures, financial
ratios and balance sheet/income statement items) were considered. The data
were analyzed using descriptive and inferential statistics (to compare the
performance of the two companies). DuPont analysis was also carried out. The
study found that both companies performed well in terms of financial ratios
related to profitability, liquidity, market, and creditworthiness.  The DuPont analysis showed that the return
on equity for Presco was mainly due to higher net profit margin while that
of Okomu was due to higher total asset turnover; weakness of Presco in the
inability to use its assets to generate sales was made up for by higher use
of debt in its capital structure. Therefore, it is recommended that Okomu
and Presco PLC should work on their profit margin and debt levels
respectively to boost return on equity. The Nigerian public should also
invest in both companies since they are performing well.


Submitted: 30/05/2019

Accepted:  04/06/2019

Published: 28/07/2019


*Corresponding Author

Adade B.F.

E-mail: fb_adade@



ventures; Presco; Okomu; Oil Palm; DuPont analysis



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Cite this Article: Adade, BF; Ada-Okungbowa, CI (2019).
Performance of Publicly Quoted Agricultural Ventures in Nigeria: The Case of
Presco PLC and the Okomu Oil Palm Company PLC. Greener Journal of Agricultural Sciences 9(3): 268-277,

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