Ellah Lakes set for major Expansion as it Acquires Tolaram’s ARPN

Ellah Lakes Plc, one of Nigeria’s leading agro-allied companies, has announced plans to acquire Agro-Allied Resources & Processing Nigeria Limited (ARPN), a move set to significantly scale up its palm oil and cassava production capacity, deepen its processing capabilities, and reinforce its presence in the country’s growing agro-industrial value chain.

The acquisition, disclosed in a corporate statement on October 3, involves the full takeover of 100 percent equity in ARPN from ARPN PTE Ltd, a Singapore-based entity jointly owned by Tolaram Africa and Valuestar Holdings. The deal, once finalized, will represent one of the largest expansions undertaken by Ellah Lakes since it refocused its business strategy toward large-scale agribusiness and oil palm development.

According to the company, the acquisition aligns with its long-term objective of becoming a dominant force in Nigeria’s agricultural and food processing sector. It follows shareholder approval at the firm’s Extraordinary General Meeting in July, which endorsed a ₦250 billion capital raise through equity offerings. The planned capital injection will strengthen Ellah Lakes’ balance sheet, enhance liquidity, and provide the financial backing necessary for its ambitious growth agenda.

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Under the terms of the deal, Ellah Lakes will assume ownership of 11,783 hectares of agricultural land in Nigeria, consisting of 6,280 hectares of oil palm plantations, 2,093 hectares of cassava plantations, and 10,393 hectares of undeveloped farmland. The company said the acquisition will immediately increase its production scale and processing potential, while also creating room for future expansion and crop diversification.

In a statement accompanying the disclosure, Ellah Lakes highlighted that the age distribution of the existing oil palm plantations provides a solid foundation for consistent output over the next decade. About 60 percent of the palms are currently in their peak productive years, 30 percent are between two and four years old, and the remainder are under two years, ensuring a steady pipeline for future yield growth.

The company emphasized that the acquisition is expected to unlock long-term opportunities in value addition, vertical integration, and food processing, while positioning Ellah Lakes to play a greater role in enhancing Nigeria’s food security and export capacity.

The transaction, however, is subject to regulatory clearance from the Federal Competition and Consumer Protection Commission (FCCPC) and other relevant agencies. Completion is targeted for December 2025, following the conclusion of due diligence and statutory approvals.

Chief Executive Officer of Ellah Lakes, Chuka Mordi, described the planned acquisition as a defining moment in the company’s transformation into a major agro-industrial player.

“This acquisition will more than double our production footprint, accelerate earnings growth, and position us as a national champion in agro-industrial production,” Mordi said. “It represents a strategic step in our journey to build a diversified, sustainable agribusiness that contributes meaningfully to food security and rural economic development.”

Mordi further explained that the acquisition of ARPN, in addition to the proposed capital raise, will place Ellah Lakes in a stronger position to pursue downstream integration in palm oil refining, cassava processing, and allied product manufacturing. The company, he noted, intends to leverage this scale to improve efficiencies, reduce costs, and expand its export capacity.

Industry analysts have described the move as a bold step that could reshape Ellah Lakes’ market positioning in Nigeria’s agricultural sector. The acquisition of ARPN, which already has established plantations and processing infrastructure, is expected to provide Ellah Lakes with an immediate boost in operational capacity and productivity.

Over the past two years, Ellah Lakes has undertaken several strategic initiatives aimed at repositioning its operations, diversifying revenue streams, and unlocking value for shareholders. With Nigeria’s agro-industrial landscape witnessing renewed investor interest amid government efforts to promote local production, the company’s expansion comes at a critical time for the sector.

If successfully concluded, the ARPN deal and the associated equity raise are expected to cement Ellah Lakes’ reputation as one of Nigeria’s most dynamic agribusiness players — driving growth, job creation, and sustainable agricultural development across the country.

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