UK Pledges $7.5 Million to Enhance Food Security in Nigeria
The UK, through its development finance institution – British International Investment (BII) – has committed $7.5 million to Nigerian agri-tech company, Babban Gona, to strengthen food security and climate resilience for smallholder farmers in northern Nigeria.
British Deputy High Commissioner in Lagos, Mr. Jonny Baxter, made this announcement during a press conference on Tuesday. He noted that the investment aims to tackle major challenges faced by smallholder farmers, including limited access to financing, quality agricultural inputs, agronomic training, and stable market opportunities.
Despite contributing up to 60% of Nigeria’s maize production, smallholder farmers in the North grapple with low productivity and growing climate-related threats such as floods and droughts. These issues contribute to post-harvest losses of up to 30%, jeopardizing yields and deepening food insecurity, Baxter explained.
Babban Gona seeks to address these systemic issues by offering an end-to-end solution via its AI-powered platform. Its services include high-quality agricultural inputs, credit facilities, training in climate-smart practices, as well as harvest, storage, and market access support.
Baxter highlighted Babban Gona’s franchise model, which enables top-performing farmers to run micro-enterprises that distribute inputs and financing. This approach is expected to facilitate scalability and provide pathways to local bank funding.
By 2029, the initiative aims to reach around 140,000 smallholder farmers, improving productivity, income levels, and climate resilience.
A key focus of the investment is enhancing farmers' climate adaptation strategies. Babban Gona’s support package includes climate-resilient seeds and multi-peril area yield insurance to help mitigate losses from extreme weather events.
Baxter emphasized that the initiative aligns with BII’s broader mission to support underserved rural communities, complementing past investments in other agri-businesses like AgDevCo and Johnvents.
UK Trade Envoy to Nigeria, Florence Eshalomi, also lauded the investment, describing it as a major step in transforming Nigeria’s smallholder agriculture sector. She stated that the funding would scale Babban Gona’s innovative, tech-enabled model that connects farmers to finance, training, and services, ultimately boosting productivity and resilience.
Eshalomi reflected on the UK’s early support of Babban Gona, from programs like Propcom Maikarfi to this latest milestone investment, calling the company's growth a strong example of what’s possible with sustained agricultural investment in Nigeria.
Babban Gona’s Managing Director, Kola Masha, expressed gratitude to the UK government, noting that it was the first institutional backer of the company’s public debt raise in 2013. He added that BII’s current investment—ten times larger—underscores a shared vision to uplift smallholder farmers.
Masha reaffirmed Babban Gona’s commitment to deepening its impact, with the goal of becoming one of the world’s most impactful businesses.
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