The United Kingdom’s development finance institution, British International Investment (BII), has committed $7.5 million to Babban Gona, an agri-tech social enterprise focused on supporting smallholder farmers in Northern Nigeria.
This investment brings BII’s total commitment to Nigeria’s agricultural sector to over $120 million, aimed at strengthening food security, promoting climate resilience, and enhancing agricultural productivity.
The funding will address key challenges faced by farmers, including limited access to finance, poor-quality inputs, and vulnerability to climate change.
Babban Gona’s innovative franchise model offers farmers access to critical resources like credit, agronomic training, and market opportunities, helping to improve yields and incomes.
Speaking during the signing ceremony in Lagos, Jonny Baxter, the UK’s Deputy High Commissioner to Nigeria, reiterated the UK’s commitment to supporting Nigeria’s agricultural growth.
He emphasized that this investment would not only enhance food processing capabilities but also create jobs and strengthen livelihoods, further deepening economic ties between the UK and Nigeria.
Florence Eshalomi, the UK Trade Envoy to Nigeria, also welcomed the investment, describing it as a testament to the UK’s long-term commitment to Nigeria’s agricultural future.
She highlighted the importance of scaling Babban Gona’s innovative model, which empowers farmers with access to essential services, thereby boosting productivity, increasing income, and building resilience to climate risks.
In his remarks, BII’s West Africa Regional Director, Benson Adenuga, noted thatthis partnership exemplifies how BII is deploying capital to support innovative and high-impact business models.
He explained that the funding would help bridge the financing gap for smallholder farmers as well as contribute to building a more resilient and productive agricultural sector in the region.
In December 2023, BII made a $15 million equity investment in Valency International, aimed at expanding cashew processing and warehousing operations.
Additionally, in February the previous year, BII provided a $40.5 million loan to Johnvents Group to increase the company’s cocoa processing capacity, contributing to Nigeria’s growing share in the global cocoa market.
BII’s strategy also includes a recent $65 million participation in a $1.25 billion financing package for Indorama Eleme Fertilizer and Chemicals.
This investment is targeted at expanding Nigeria’s fertiliser production capacity and supporting the country’s agricultural sector with more sustainable and efficient practices.
Babban Gona’s Managing Director, Kola Masha, expressed gratitude for BII’s support, calling it a significant endorsement of the company’s mission.
He noted that this new investment would help scale their efforts and improve the livelihoods of smallholder farmers, particularly the youth, many of whom are at risk of unemployment.
