The United Kingdom has announced a $7.5 million debt investment aimed at bolstering agricultural productivity and climate resilience among smallholder farmers in Northern Nigeria.
The funding, channeled through British International Investment (BII) to agritech enterprise Babban Gona, is expected to benefit up to 140,000 farmers by 2029.
The initiative targets key structural challenges faced by small-scale farmers, including limited access to finance, agricultural inputs, training, and markets.
It also seeks to mitigate climate-related risks such as flooding and drought, which have increasingly threatened food production and income stability in the region.
Strategic Trade Alignment
Florence Eshalomi, the newly appointed UK Trade Envoy to Nigeria, emphasized the strategic alignment between the UK’s development priorities and those of President Bola Tinubu’s administration.
In an interview with Nairametrics, Eshalomi highlighted the Enhanced Trade Partnership Agreement signed in 2024 as a cornerstone of renewed bilateral cooperation.
“These first steps show that the UK government is keen to build on our longstanding relationship and cultural ties,” Eshalomi said. “We’re committed to working closely with President Tinubu’s team to secure impactful trade deals and development partnerships.”
She also noted the significance of the Nigerian diaspora in the UK and recent diplomatic engagements, including visits by the Foreign Secretary and the Mayor of London, as indicators of deepening ties.
British Deputy High Commissioner in Lagos, Jonny Baxter, said the investment would address key challenges facing smallholder farmers, including poor access to finance, quality inputs, agronomic training, and reliable markets.
“The UK is making this $7.5 million debt investment to address key challenges facing smallholder farmers, including poor access to finance, quality inputs, agronomic training, and reliable markets,” he said.
He stated that although the north produces up to 60% of Nigeria’s maize, smallholder farmers are constrained by low productivity and increasing climate risks, such as floods and droughts.
Struggle with Low Yields and Post-Harvest Losses
Babban Gona’s Managing Director, Kola Masha, speaks to the urgency of the investment, citing that Northern Nigeria accounts for 50–60% of the country’s maize production. However, smallholder farmers in the region continue to struggle with low yields and post-harvest losses of up to 30%.
“These farmers operate on small plots with limited access to credit, quality inputs, and agronomic training,” Masha explained. “Climate risks are compounding these issues, threatening both food security and livelihoods.”
The UK’s financial commitment will support Babban Gona’s AI-powered platform, which delivers end-to-end agricultural services. These include access to high-quality inputs, climate-smart training, financial credit, and post-harvest support such as storage and market linkage.
The investment marks a significant step in the UK’s broader strategy to foster sustainable development and economic resilience in Nigeria, particularly in regions most vulnerable to climate change and food insecurity.
What You Should Know
- Trade relations between the UK and Nigeria are gaining momentum in recent years. In July, the Mayor of London’s office announced plans to address long-standing challenges that have hindered seamless financial operations between the two countries.
- During a recent visit to Lagos, Deputy Mayor of London, Howard Dawber, emphasized the city’s commitment to strengthening economic ties with Nigeria—especially within the fast-growing tech and startup ecosystem.
- Dawber identified difficulty in opening bank accounts in London as a major obstacle for Nigerian businesses looking to expand operations.
He acknowledged that despite their credibility and financial success, many Nigerian firms face frustrating hurdles when attempting to set up cross-border banking channels.
He pledged to engage with UK regulators to explore technical solutions and flexible risk assessment mechanisms that could streamline banking access for legitimate foreign businesses.
