This paper focuses on the transition of Agricultural Development Authority Palm (ADAPALM) Oil Industry to Imo oil Palm industry in Ohaji/Egbema Local Government Area of Imo State. The paper therefore discusses the establishment, objectives, performance and transition of the company as part of the Imo State government’s effort to resuscitate the Company. The paper traces the historical development of ADAPALM The paper analysed oral interviews and made use of published and unpublished works and attributes the establishment of ADAPALM to factors which include the preexisting palm oil based economy in the area and the desire of the Government to address the decline of the agricultural sector by boosting the oil palm industry.

The paper found out that the industry impacted on the host community in socio-economic dimensions like the provision of employment for members of the host community and the attraction of physical infrastructure to the area, among other benefits. However, factors such as obsolete machinery, corruption, mismanagement and other factors made the company moribund. Thus, the Imo State Government had to lease the Company to a foreign firm, Roche Group and it was renamed Imo State Oil Palm Industry. Indeed, even under the Concessional Lease Agreement with Roche Group, Imo State Oil Palm Industry continued to decline and the lease was terminated.

As a consequence, an Interim Management Committee was set up for the Company but this too did not help the Company as corruption and the persistent struggle for leadership amidst unpaid salaries have combined to suppress the efficiency and growth of the Company. The paper found out that over-bloated manpower, appointment of incompetent hands and mismanagement were the major challenges of the Company and these were the result of political, ethnic and social affiliations.

The paper therefore suggests that the Government has to improve on how it runs the Company by demonstrating more commitment and political will so that ADAPALM Oil Industry can achieve its set goals.