British International Investment (BII), the UK’s development finance institution, has injected $7.5 million into Nigerian agri-tech giant Babban Gona, in a move set to boost food security and the incomes of smallholder farmers.
The bulk of the funding will finance technology, innovation, and data-driven solutions to improve farming and food systems in Northern Nigeria.
According to Kola Masha, MD, Babban Gona, Northern Nigeria, which produces up to 60% of the country’s maize, still faces deep-rooted agricultural challenges.
“Smallholder farmers, who make up the backbone of production, often work on tiny plots with little access to finance, modern inputs, and markets. Post-harvest losses reach as high as 30%, while climate risks, such as droughts and floods, continue to erode productivity,” he said.
Masha said Babban Gona’s AI-driven platform can help to unlock these barriers by offering farmers credit, drought-resilient seeds, agronomic training, storage facilities, and market access.
“Our franchise model empowers top-performing farmers to run micro-enterprises that eventually qualify for bank funding, creating a pathway from subsistence to sustainable agribusiness. By 2029, Babban Gona aims to support 140 000 farmers in Northern Nigeria,” he added.
BII’s West Africa regional director, Benson Adenuga, said the partnership with Babban Gona serves as an example of how capital can unlock inclusive growth. “This investment strengthens food security and climate resilience while addressing a critical financing gap for smallholders,” he said.
Babban Gona, which has maintained a repayment rate above 99% on farmer loans, has already shown how crucial smallholder farming is to the West African country. “With BII’s support, we are scaling our mission to unlock the power of smallholders. By 2029, we aim to empower 140 000 farmers,” said Masha.
Across Africa, agri-tech is gaining momentum, with investment in the sector crossing $640 million in 2022, according to Disrupt Africa. Nigeria remains the largest hub for agri-tech startups, but rural communities still face underinvestment and are in desperate need of initiatives like BII’s backing of Babban Gona.
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