British International Investment will lend $7.5 million to Nigerian agri-tech company Babban Gona to help smallholder farmers in Northern Nigeria access better financing and farming services. The investment targets farmers who grow 50-60% of Nigeria’s maize but face barriers including limited credit, poor-quality seeds, and weak market connections, according to a BII press release. Babban Gona expects to reach 140,000 farmers by 2029 with BII’s backing.
Post-harvest losses hit 30% in Northern Nigeria, where smallholders work small plots with little access to finance or quality inputs. Climate risks like floods and droughts make farming even harder, while most farmers lack training in climate-smart practices. These problems worsen food insecurity across a region that feeds much of the country.
Babban Gona runs a franchise system where successful farmers set up micro-enterprises that supply inputs and credit to other smallholders. The company helps these farmer-led businesses grow until local banks will lend to them directly. Farmers get drought-resistant seeds, crop insurance, training, and help with storage and marketing through an AI platform.
“Our partnership with Babban Gona is a great example of how BII is using catalytic capital to support innovative, high-impact business models that transform lives and economies,” said Benson Adenuga, BII’s West Africa Regional Director.
Managing Director Kola Masha said the investment is ten times larger than the UK government’s first backing in 2013, calling it proof of their “shared vision for bettering the lives of smallholder farmers.”
BII’s investment continues the UK development finance institution’s push into agricultural ventures in underserved markets. The deal follows recent investments in AgDevCo and Johnvents as BII targets rural communities that commercial investors often ignore.
