The United Kingdom (UK) has approved more than $120 million in fresh investments to support Nigeria’s agricultural sector, boost food security, and improve resilience against climate change.
The funding comes through British International Investment (BII), the UK’s development finance institution and impact investor, which has a history of supporting high-impact enterprises in Nigeria for over 70 years.
The latest announcement includes a $7.5 million debt investment in Babban Gona, an agri-tech social enterprise that operates a franchise model to empower smallholder farmers in Northern Nigeria.
This support is expected to tackle major barriers facing farmers, including limited access to finance, poor availability of high-quality inputs, and increasing vulnerability to climate risks.
Speaking during the signing ceremony in Lagos, UK Deputy High Commissioner Jonny Baxter reaffirmed Britain’s long-term commitment to Nigeria’s agricultural transformation. He said:
“This investment will enhance food processing capabilities, create jobs, and strengthen livelihoods.
It reflects the UK’s broader goal of deepening economic partnerships with Nigeria by driving industrialisation and unlocking its export potential.”
Similarly, UK Trade Envoy to Nigeria, Florence Eshalomi MP, described the investment as a milestone in the UK–Nigeria partnership.
She highlighted Babban Gona’s impact-driven, tech-enabled model that combines access to credit, inputs, training, and services to help farmers scale their productivity.
“This investment will empower farmers, boost yields and incomes, and build climate resilience.
It is a strong demonstration of the UK’s long-term commitment to Nigeria’s agricultural future,” she said.
The Babban Gona partnership builds on other BII-backed projects in Nigeria’s agro-processing and fertilizer industries.
In December 2023, BII signed a $15 million equity deal with Valency International, a Singapore-based commodities firm expanding cashew processing and warehousing operations in Nigeria.
The project is expected to create up to 2,800 jobs and provide indirect market access to 60,000 smallholder farmers, boosting Nigeria’s global cashew trade presence.
In February 2024, BII approved a $40.5 million loan facility for Johnvents Group, a cocoa processing company.
The financing will expand processing capacity at its Ile-Oluji facility from 13,000 to 30,000 metric tonnes annually, positioning Nigeria to capture greater value in the global cocoa market.
Johnvents also aims to achieve 100% traceable cocoa by 2027, supporting farmers with sustainable practices.
Most recently, BII disclosed its $65 million participation in a $1.25 billion financing package for Indorama Eleme Fertilizer and Chemicals Limited.
The investment will fund a third urea fertilizer plant and a new export terminal in Port Harcourt, boosting Nigeria’s fertilizer output to 1.4 million metric tonnes annually and creating up to 8,000 direct and indirect jobs.
Collectively, these commitments represent one of the largest coordinated flows of UK-backed agricultural investment into Nigeria in recent years.
Benson Adenuga, BII’s West Africa Regional Director and Head of Office for Nigeria, emphasised that the institution is focused on deploying “catalytic capital” into innovative business models that transform smallholder farming.
“By backing Babban Gona’s franchise model, we are bridging critical financing gaps and building resilience in an often-overlooked sector.
These efforts strengthen livelihoods while contributing to food security,” Adenuga explained.
Kola Masha, Babban Gona’s Managing Director, called the investment a “vote of confidence” in the organisation’s mission to transform smallholder farming.
He noted that Babban Gona uses an AI-powered platform to provide farmers with access to inputs, training, and markets.
“By 2029, our goal is to improve yields and incomes for over 140,000 smallholder farmers, many of them young Nigerians at risk of unemployment.
We are committed to becoming the Earth’s highest-impact business,” Masha said.
Agriculture remains central to Nigeria’s efforts to reduce poverty, diversify exports, and ensure food security for its rapidly growing population.
Yet, smallholder farmers — who account for about 70% of the nation’s agricultural output — face systemic challenges such as poor financing, low mechanisation, and climate shocks.
Experts believe that UK-backed investments, particularly those focused on agro-processing and input supply, can play a pivotal role in improving productivity, stabilising rural incomes, and positioning Nigeria as a stronger player in global agricultural trade.
With Nigeria’s food import bill estimated at over $10 billion annually, these interventions are expected to help the country close gaps in local production while boosting export earnings.
The UK’s approval of over $120 million in agricultural investments underscores its commitment to Nigeria’s long-term food security and economic resilience.
By combining technology-driven models like Babban Gona with large-scale agro-processing and fertilizer production, the partnership aims to empower farmers, create thousands of jobs, and strengthen Nigeria’s role as a regional food powerhouse.
As climate challenges intensify and global supply chains shift, Nigeria’s agricultural transformation could become one of the most significant levers for inclusive economic growth — with UK-backed initiatives playing a central role.