Nigerian lawyer and businessman Gbenga Oyebode has seen the value of his holdings in Okomu Oil Palm Company soar by more than $17 million this year, following an extraordinary rally in the company’s shares on the Nigerian Exchange.
The gain, built on strong financial performance and resilient consumer demand, contrasts sharply with the reality of rising food costs faced by most Nigerians.
Oyebode, who chairs Okomu Oil and holds a 4.37 percent stake in the Edo-based agribusiness, has benefited from a 136 percent rise in the company’s share price since January. The rally has lifted his stake’s value from roughly $12.7 million to about $30.2 million, one of the largest personal gains recorded by a corporate insider in Nigeria this year.
Okomu Oil’s Performance Defies Economic Headwinds
At the heart of this surge is the company’s solid fundamentals. Okomu Oil operates over 19,000 hectares of palm plantations and manages a 7,334-hectare rubber division, producing more than 74,000 tonnes of palm oil and 9,000 tonnes of dry rubber annually. The firm’s product mix, spanning palm oil, palm kernel oil, and rubber, has helped cushion it from price swings in global commodity markets.
For the nine months ending 30 September, Okomu Oil reported revenue of N173.95 billion, a sharp increase from N103.95 billion in the same period a year earlier. Management credited the growth to strong local demand for edible oils and rubber products. With palm oil serving as a key ingredient in everyday cooking and consumer goods, the company has found steady buyers even in a sluggish economy.
Rising Share Prices and the Reality on the Ground
The jump in Okomu’s share price from N444 to N1,050 per share in ten months pushed its market capitalisation to $692 million, rewarding investors like Oyebode but also illustrating the divide between Nigeria’s boardroom winners and struggling consumers.
While shareholders enjoy record gains, the average Nigerian continues to grapple with surging food inflation. Palm oil, one of the company’s core products, has nearly doubled in price in local markets over the past year, adding pressure to household spending.
Analysts say Okomu’s financial success reflects how agribusinesses have been able to pass on higher input costs to consumers without denting profits, effectively making food inflation a burden borne by the public. “Investors in companies like Okomu are benefitting from the very inflation that squeezes consumer wallets,” said one Lagos-based market analyst.
