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By Chinyere Anyanwu
The British International Investment (BII), the UK’s development finance institution and impact investor, and Babban Gona, a Northern Nigeria-based agri-tech platform have signed a Memorandum of Understanding (MoU) to commit $7.5 million debt investment to boost food security and climate resilience for smallholder farmers in Northern Nigeria.
At the signing ceremony, which took place in Lagos on Tuesday, September 2, BII said the investment is aimed at tackling key barriers for Nigerian smallholder farmers including limited finance, inputs, training, and market access and aligns with its mandate to support rural communities in underserved markets.
BII’s support will, in addition, help scale Babban Gona’s innovative model, enabling farmer-led enterprises to access local bank funding as well as improve yields, incomes, and climate resilience for around 140,000 farmers in Northern Nigeria by 2029.
Speaking at the signing ceremony in Lagos on Tuesday, September 2, the British Deputy High Commissioner to Nigeria, Jonny Baxter, lauded Babban Gona’s impact on smallholder farmers’ agricultural activities.
Baxter said, “it is inspiring to hear the vision of Babban Gona. What it represents is the need to bring investments and private sector approach into Nigeria’s agricultural market. It represents the understanding that this is the only way to bring prosperity. Private sector investment is crucial to Nigeria’s growth. It recognises the importance of developing Nigeria’s agricultural sector as a key vehicle to growth, job creation, business investments, climate resilience, and food and nutrition security.”
In his address, the West Africa Regional Director and Head of Office for Nigeria, BII, Benson Adenuga, 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.”
In her remarks, UK Trade Envoy to Nigeria, Florence Eshalomi, expressed deep confidence in the expected outcome of the investment.
She 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.”
Eshalomi noted that, “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.”
Babban Gona’s Managing Director, Kola Masha, in his address, commended BII for its unrelenting support to the growth of agriculture and the wellbeing of smallholder farmers in Northern Nigeria.
Masha 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 10 times 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.”
Explaining its motivation for embarking on the financial support to the farmers under the Babban Gona platform, BII said, ”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.”
Adenuga signed the MoU on behalf of British International Investment while Masha signed on behalf of Babban Gona.
