SAO Agro Allied Service Limited, an agricultural firm operating in Ondo State, Nigeria, has vehemently denied allegations of land encroachment and destruction of farmlands raised by protesting farmers in Odigbo Local Government Area. The company asserts its operations are legitimate, conducted on legally acquired land within the Oluwa Forest Reserve, and contribute significantly to the state’s economy and the nation’s agricultural goals.
The controversy erupted when hundreds of farmers staged a protest, blocking the Lagos/Ore expressway, claiming SAO Agro, in collaboration with the state government, had destroyed their plantations within the forest reserve to seize their land. SAO Agro counters this narrative, explaining its presence in Ondo State stems from a federal government initiative to address the deficit in palm oil production. The company followed due process, obtaining 10,000 hectares of land from the state government after the forest reserve was declassified to promote agricultural investment.
SAO Agro emphasizes its commitment to legal and transparent operations. The company acquired the land over five years ago, commenced work in 2021, and has been remitting an annual sum of N40 million to the state government as agreed. They hold a Certificate of Occupancy (C of O) for the land, demonstrating their legitimate ownership. The company’s Vice Chairman, David Olijogun, highlighted the extensive due diligence and financial contributions made to the state, reinforcing their adherence to established protocols.
Further addressing the allegations, Olijogun clarified the circumstances surrounding the land allocation. He explained that the federal government, recognizing the potential for palm oil production and the existing deficit, encouraged large-scale investment in the sector. Visibility studies identified idle forest reserves, including Oluwa Forest Reserve, as suitable locations for agricultural development. These reserves, deemed unproductive and havens for criminal activity, were subsequently declassified, paving the way for allocation to investors capable of boosting palm oil production.
Olijogun also clarified the role of Ayo Sotinrin, the newly appointed MD of Bank of Agriculture (BOA) and former CEO of SAO Agro. Sotinrin had resigned from the firm in April 2024, before the protests occurred, therefore, linking him to the current land dispute is unfounded. The company maintains that its operations are in line with the federal government’s agricultural development strategy, creating jobs and contributing to the local economy.
The company’s Chief Operations Officer, Uthama Seelan, expressed concern about the potential negative impact of these unsubstantiated allegations on future investments in Ondo State. He urged both the state and federal governments to intervene swiftly and decisively to address the issue, ensuring that the business environment remains attractive to investors and that legitimate agricultural development is not hampered by misinformation and disruptive protests. He stressed the importance of protecting investors to foster economic growth and achieve national agricultural goals.
