Wilmar Expands in Nigeria as Nation's Currency Crisis Ebbs

Wilmar International, the Singapore-listed agribusiness, plans to boost its palm oil business in Nigeria, wooed by policies that have helped stabilise the naira and bolstered the availability of US dollars in Africa's most populous nation.

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The company, led by billionaire Kuok Khoon Hong, last week announced a plan to acquire all the shares in a palm oil venture with PZ Cussons for US$70 million (S$90.5 million). Wilmar also acquired 8,500ha of old rubber plantations to grow crops that will produce edible oil, according to Mr Santosh Pillai, chief executive officer of Wilmar's African unit.

The investment shows confidence that the steps Nigerian President Bola Tinubu has taken to revive economic growth and improve government finances may be working. Nigeria's foreign exchange reserves have increased, inflation has moderated and the naira has stabilised.