Nigeria’s Babban Gona Secures $7.5m from British Investment Bank to Boost Smallholder Farming

Nigerian agri-tech startup Babban Gona has raised $7.5 million in debt funding from the British International Investment (BII) to expand its support for smallholder farmers across Northern Nigeria.

The funding, announced Monday, will enable the company to scale its climate-resilient agricultural model, strengthen food security, and improve the livelihoods of about 150,000 farmers by 2029.

Founded in 2012 by Kola Masha, Babban Gona—meaning “Great Farm” in Hausa—was established to address Nigeria’s high unemployment and food insecurity by empowering smallholder farmers with finance, training, and technology-driven solutions. The company currently supports over 110,000 farmers across 15 northern states, including Kaduna, Kano, Katsina, Bauchi, Plateau, Jigawa, and Abuja.

Impact and Vision

For Masha, who serves as managing director, the new financing represents both recognition of the startup’s impact and an opportunity to accelerate its vision.

“This investment will catalyse the next phase of our journey as we enable others to replicate what we do, with a goal to support 50 million smallholder farmers,” Masha said. “It is a powerful testament to Babban Gona’s vision of shaping lives and strengthening food security.”

The $7.5m raise marks Babban Gona’s first external funding in over a decade; its last capital injection was a much smaller public debt raise in 2013.

Backing from British International Investment

Benson Adenuga, BII’s West Africa regional director and head of office for Nigeria, said the collaboration demonstrates confidence in Babban Gona’s high-impact model.

“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 in a region often overlooked by investors,” Adenuga noted.

Technology for Agriculture

Alongside credit financing, Babban Gona leverages artificial intelligence, trained with more than 2 million images, to help farmers detect and manage crop-related issues. Its model also includes Trust Groups—farmer cooperatives of 3–5 members—who undergo agronomy, financial literacy, and leadership training via the Babban Gona Farm University before accessing low-interest loans.

Agriculture’s Role in Nigeria’s Economy

Agriculture remains a cornerstone of Nigeria’s economy, employing 34% of the workforce and contributing 28.65% to GDP in Q3 2024. Despite modest growth of 0.18% in Q1 and 1.14% in Q3 last year, the sector faces chronic underinvestment. Startups like Babban Gona are increasingly seen as key to unlocking productivity, creating jobs, and building climate resilience.

With the fresh capital from BII, Babban Gona is positioning itself as a model for sustainable agri-tech investment in Africa, blending technology, finance, and grassroots empowerment to transform farming at scale.