As part of efforts aimed at boosting food security and climate resilience for smallholder farmers in the northern part of the country, the United Kingdom’s development finance institution and impact investor, British International Investment (BII), has announced a $7.5m investment in a Nigerian agri-tech platform, Babban Gona.

During the launch event held in Lagos, it was revealed that the investment would tackle key barriers for Nigerian smallholder farmers, including limited finance, inputs, training, and market access. The support will also help scale the firm’s innovative model, enabling farmer-led enterprises to access local bank funding.

The Guardian learnt that the support is necessary based on the fact that northern Nigeria produces 50 to 60 per cent of the country’s maize, but smallholder farmers face persistent challenges that limit their productivity and income.

Many also 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.

To address this, 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.

The franchise model enables top-performing farmers to establish and run their own micro-enterprises, which provide farmers with inputs and working capital financing. The firm supports these enterprises to grow to a scale where they can access funding from local banks.

Through this model, it expects to improve yields, income, and climate resilience for around 140,000 smallholder farmers in the north by 2029.

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.

In her speech, the UK Trade Envoy to Nigeria, Florence Eshalomi MP, said: “Today, I’m proud to stand alongside British International Investment (BII) as we announce a $7.5m 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.”

On his part, 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 his presentation, Babban Gona’s Managing Director, Kola 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 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.”