Social Issue

The agriculture sector represents 22% of Nigeria’s GDP and its workers make up approximately 58% of the country’s productive force. They are basically small farmers who produce more than 70% of the country’s food and own more than 80% of the agricultural land. However, the yield of their crops is very low and it is estimated that, compared to other developing countries, agricultural production only reaches between 20% and 50% of their average. As a result, millions of people in the agriculture sector are in poverty, with incomes below two dollars a day. Northern Nigeria, where agriculture dominates the economy, produces the majority of the country’s crops: corn, soybeans, rice, and cowpea beans. In spite of everything, the region must face extreme poverty, since it is one of the least wealthy in the country.

The low profitability of small farmers is due to the lack of access to credit to obtain resources, the lack of knowledge of how to manage them, and the inability to sell their products at a fair price.

Our Response

Babban Gona is a for-profit company in Nigeria whose mission is to improve smallholder incomes and livelihoods by transitioning to more profitable commercial farming practices, and by providing a comprehensive set of services that include training, financial services, agricultural investments, and marketing services. The company faces these challenges with a business model in which farmers organise into “trust groups” whose members receive quality funding and training. Thanks to this, they have been able to more than double the yield of their crops. Furthermore, improved market access has allowed these small farmers to benefit from a price increase of between 20% and 30% compared to those who work alone.

Expected Social Impact

Historically, farmers who collaborate with Babban Gona have achieved a level of productivity that is double the national average, and their income is often three times that of the country’s average. This is because the prices of their surplus corn and rice are higher.

The first investment of $ 150,000 is estimated to have allowed Babban Gona to collaborate with more than 390 farmers a year. The new investment of 500,000 will help Babban Gona collaborate with around 1,200 farmers a year.