NSIA Invests in Smallholder Framers through Babban Gona Franchise Model.

Lagos

The Board of Directors of the NSIA, led by the Chairman, Mr. Jide Zeitlin, and the Managing Director, Mr. Uche Orji today signed an agreement for the investment of US$5.0 million in Babban Gona (“BG” or the “Company”), a high impact, a scalable agricultural franchise that focuses on smallholder farmers. The signing was executed with the representatives of Babban Gona, led by HRH Mallam Sanusi Lamido Sanusi, the Emir of Kano and Chairman, BG, and, Mr. Kola Masha, Managing Director of Babban Gona.

BG is an inclusive agriculture model targeted at smallholder farmers across six northern states, namely Katsina, Kano, Kaduna, Plateau, Bauchi, and Jigawa, with a view to linking the farmers to larger economic actors, ultimately improving agricultural productivity, expanding markets, and trade, and increasing the economic resilience of susceptible rural communities. Under the model, BG provides a suite of maize and rice inputs and mechanization services that enables smallholder farmers to lower input costs, secure financing, and increase yields.

Working through the Trust Groups system, BG provides a sustainable, private sector channel for cost-effective delivery of enhanced agricultural technologies, credit, and services that optimize yields and labor productivity, while simultaneously improving market access for small holder farmers. The BG agricultural franchise business model is expected to continue to scale up and sustainably increase the number of farmers that it serves. The company has stated that its goal is to service a million farmers by 2025.

Speaking on the investment, Mr. Uche Orji, MD & CEO NSIA said, “the investment is consistent with NSIA’s focus on agriculture and demonstrates high social impact potential including job creation, improved livelihood and increased food security and nutrition.

Commenting at the signing, HRH Mallam Sanusi Lamido Sanusi, the Emir of Kano and Chairman, Babban Gona said “Babban Gona is a franchise model, which provides small holder farmers access to required investment capital. The out-grower model continues to help farmers increase production by providing access to low-cost and high-quality inputs along with necessary inputs and marketing support for the harvests. The idea is to share best practices with farmers along the span of the agricultural value which will result in a dramatic rise in output in terms of quality and yield”