The Heart of Agriculture: Babban Gona’s Mission to Transform Lives in Northern Nigeria
Nigeria, once the agricultural powerhouse of West Africa, has faced numerous challenges in recent years. Erratic rainfall, depleted soil, and limited access to modern farming techniques have left many farmers struggling to make ends meet. The region, home to millions of smallholder farmers, has seen its agricultural productivity decline, threatening food security and economic stability. On top of that with a rapidly growing youth population and limited job opportunities, the spectre of unemployment casts a long shadow over the region’s future. Over the next two decades, an estimated 80 million young Nigerians will enter an already saturated workforce.
At the heart of these challenges Babban Gona, a company whose name means “Great Farm” in Hausa, the local language, works on finding ways to provide security for millions of smallholder farmers and their families.
In this context, Babban Gona’s work addresses several critical needs:
- Improving agricultural productivity through better inputs and farming practices
- Providing access to finance for smallholder farmers
- Creating employment opportunities in the agricultural sector
- Enhancing food security through increased production and improved storage
By focusing on these areas, Babban Gona is contributing to the broader development of Northern Nigeria’s agricultural sector and addressing some of its most pressing challenges.
Agriculture plays a vital role in Nigeria’s economy, accounting for approximately 25% of GDP and providing employment for 70% of the workforce. Despite its vast arable land, Nigeria remains a net food importer. To reverse this trend and fully capitalize on its agricultural potential, significant investment is required to develop the country’s food processing and agribusiness sectors. The agricultural value chain faces numerous challenges, compounded by global factors influencing prices. Climate change has further worsened these issues, as evidenced by the severe flooding events that struck Nigeria in September and October 2022, and again in October 2024. Nigeria is experiencing rapid population growth, which is driving a significant increase in food demand. Projections indicate that Nigeria’s population will surpass 370 million by 2050. In recent years, the proportion of Nigerians facing severe food insecurity has been on the rise, with the situation particularly acute in several northern states. These environmental pressures and trends underscore the urgent need for sustainable agricultural development and improved food security measures across the country.
A Vision Takes Root
Babban Gona planted its first seeds of change in 2010 with a mission to make small farmers richer. The company envisioned a future where agriculture could once again become the engine of job creation and economic growth in Nigeria.
Kola Masha, the founder of Babban Gona, explains:
“We believe that as oxygen is to fire, so are unemployed youth to rising insecurity. Our goal is to address the root cause by unlocking agriculture’s potential as Africa’s job creation engine.”
The Babban Gona Model
At the heart of Babban Gona’s approach are the Community Agricultural Finance Institutions (CAFIs). These micro-entrepreneurs, typically trusted farmers within rural communities, serve as the cornerstone of Babban Gona’s operations. Each CAFI supports a network of about 100 farming families, providing essential services such as training, financial credit, agricultural inputs, and harvesting and market support
This model, powered by Babban Gona’s advanced agritech platform and supported by thousands of on-ground personnel, has yielded impressive results. Farmers working with Babban Gona consistently achieve yields and net incomes more than two times the national average.
Impact and Growth
The impact of Babban Gona’s work is impressive. In just over a decade, the company has:
- Scaled its operations over 1000-fold
- Become, at its peak, the single largest maize-producing entity in Africa
- Supported farmers on 170,000 acres of corn (equivalent to 12 Manhattans)
- Deployed over $200 million in financing to smallholder members
- Maintained an average 99% repayment rate.
AgriFI’s Support for Babban Gona
In 2020, AgriFI, the EU-funded Agriculture Financing Initiative managed by the EDFI Management Company, committed EUR 5 million to Babban Gona, an innovative agricultural enterprise co-owned by the smallholder farmers it supports. The primary objective of this financing was to reach more smallholder farmers with tailored technologies and facilities to optimize productivity.
AgriFI’s investment is expected to catalyse funds aimed at creating sustainable employment in agriculture for one million individuals by 2025. This support has enabled Babban Gona to provide a holistic range of services, including credit, education, training in sustainable farming practices, provision of high-quality affordable agricultural inputs, storage facilities, and marketing and distribution support. By channelling support through Babban Gona, AgriFI leverages limited donor funding to build together with Nigerian entrepreneurs, using their know-how and local knowledge to create employment, especially for the country’s youth and women, and stimulate much-needed economic growth.
Looking to the Future
Babban Gona’s vision extends beyond the borders of Nigeria. The company aims to create around 50 million jobs by 2043 across approximately 10 different countries.
This ambitious goal is rooted in the belief that agriculture, when properly supported and technologically enabled, can be the key to addressing Africa’s youth unemployment challenge.
As Kola Masha puts it, “We’re building the Shopify of agriculture. Just as Shopify empowers small businesses with advanced technology to build thriving e-commerce organizations, we’re using cutting-edge technology to help small farmers establish successful Community Agricultural Finance Institutions.”
The story of Babban Gona is of innovative thinking, sustainable practices, and a deep commitment to social impact. As the company continues to grow and expand its reach, it stands as an example of how investment in agriculture can transform lives, create jobs, and build a more secure future for millions.
For investors, policymakers, and development partners, Babban Gona offers a compelling model of how to drive sustainable economic growth and job creation in Africa. By supporting companies like Babban Gona, we can help write a new chapter in the story of agriculture – one where smallholder farmers are at the centre of a thriving, sustainable, and prosperous future.
