The investment tackles key barriers for Nigerian smallholder farmers including limited finance, inputs, training, and market access.
BII’s support will help scale Babban Gona’s innovative model, enabling farmer-led enterprises to access local bank funding.
Babban Gona aims to improve yields, incomes, and climate resilience for around 140,000 farmers in Northern Nigeria by 2029.
British International Investment (BII), the UK’s development finance institution and impact investor, today announced a $7.5 million debt investment in Nigerian agri-tech platform, Babban Gona, to boost food security and climate resilience for smallholder farmers in Northern Nigeria.
Northern Nigeria produces 50-60 per cent of the country’s maize but smallholder farmers face persistent challenges that limit their productivity and income. Many cultivate small plots of land, with limited access to finance, quality inputs, agronomic training, and reliable markets. These constraints are compounded by growing exposure to climate risks such as floods and droughts, which further threaten yields and income stability. These challenges contribute to post harvest losses of up to 30 per cent, worsening food insecurity across the region.
Babban Gona’s offering is designed to overcome these structural barriers by providing comprehensive end-to-end services for smallholders via its AI-powered platform – including high-quality agricultural inputs, financial credit, training on climate-smart practices, and support with harvest, storage, and access to market.
Babban Gona’s franchise model enables top-performing farmers to establish and run their own micro-enterprises which provide farmers with inputs and working capital financing. Babban Gona supports these enterprises to grow to a scale where they can access funding from local banks. Through this model, Babban Gona expects to improve yields, incomes, and climate resilience for around 140,000 smallholder farmers in northern Nigeria by 2029 – supported by BII’s investment to achieve sizeable impact.
In addition to improving food security and economic outcomes, a core component of the investment is building climate resilience of smallholders. Babban Gona’s services include climate-smart agricultural inputs such as drought-resilient seeds and multi-peril area yield insurance, which helps farmers recover from climate shocks.
The investment aligns with BII’s mandate to support rural communities in underserved markets and builds on recent investments in innovative agricultural companies such as AgDevCo and Johnvents.
UK Trade Envoy to Nigeria, Florence Eshalomi MP, said: “Today, I’m proud to stand alongside British International Investment (BII) as we announce a $7.5 million investment into Babban Gona, a pioneering social enterprise transforming smallholder agriculture in Nigeria. This investment will help scale an innovative, tech-enabled model that empowers farmers with access to finance, training, and services, boosting yields and incomes while building climate resilience. From early-stage UK support through Propcom Maikarfi to this milestone investment, Babban Gona’s journey is a powerful example of what’s possible when we invest in Nigeria’s agricultural future. This partnership reflects the UK-Nigeria commitment to sustainable, inclusive growth, and I’m excited to see the impact it will generate.”
Benson Adenuga, West Africa Regional Director and Head of Office for Nigeria, BII, said: “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. By backing this pioneering franchise model, we are not only addressing a critical financing gap but also helping to build a more resilient and productive agricultural sector and support smallholder farmers in a region that is often overlooked by investors. This investment will deliver tangible impact at scale, strengthening food security and climate resilience.”
Kola Masha, Babban Gona’s Managing Director said: “The British government played an instrumental role in our story, becoming the first institutional investor in our 2013 public debt raise. Now, a little more than a decade later, to have British International Investment commit an amount 10x larger is a powerful testament to our shared vision for bettering the lives of smallholder farmers. We are thrilled to have them partner with us in this next phase of our journey as we accelerate the impact of our work, with the ambition to become the Earth’s highest-impact business.”