Babban Gona Farmer Services Nigeria Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Established in 2012, Babban Gona (“Great Farm” in Hausa) is a financially sustainable and scalable agricultural enterprise co-owned by its farmers. The company provides cost effective end-to-end services to a network of franchise farmer groups on credit that is repayable at the end of the season. These services include training in sustainable farming, crop insurance, access to storage facilities, including a warehouse receipt program, marketing and distribution of products, access to credit and high-quality farm inputs. Furthermore, Babban Gona has developed a ‘Last Mile’ business line. This initiative provides Babban Gona members with products (e.g. fertilizer) to sell to non-Babban Gona members, thus further increasing their net incomes. Babban Gona is also building a suite of innovation programs in education, maternal health, poultry and eMobility that stack additional value on top of farming income.
What is our funding objective?
After the first two loans provided to Babban Gona in 2017 and 2022, the new facility (up to USD 36 million – consisting of a committed and an uncommitted facility) will allow Babban Gona to further expand its innovative farmer service model which is estimated to increase smallholders’ yields and net incomes to up to 2 times the national average.
Why do we want to fund this investment?
Babban Gona is currently the premier maize producer in Nigeria. Through its model, Babban Gona creates much-needed jobs in northern Nigeria and a path out of poverty and subsistence farming for smallholder farmers. Over the past 14 years, Babban Gona has provided its services to over 500,000 smallholder farmers cumulatively while currently serving c. 50,000 farmers annually. Throughout this period, Babban Gona has maintained a 99+% loan repayment rate, showcasing that smallholder farmers can be invested in in a financially sustainable way.
What is the Environmental and Social categorization rationale?
Based on the identified Environmental and Social (E&S) risks and high contextual risk, the E&S project categorization for this investment is B+. Potential E&S risks associated with Babban Gona’s operations include labor and working conditions (including supply chain labor risks), occupational health and safety, climate related risks, transportation, food safety, pesticide management, security management and deforestation /habitat destruction. Northern Nigeria is characterized by a challenging security environment resulting in an elevated contextual risk. The applicable standards include PS1 to PS4 and PS6 (supply chain), with the World Bank General EHS and Annual Crop Production Guidelines applicable. The described risks are being managed and mitigated, through the implementation of Babban Gona’s Environmental & Social Management System and an Environmental and Social Action Plan.
More investments
| Date | Total FMO financing |
|---|---|
| 4/8/2026 | USD 10.00 MLN |
| 4/15/2021 | USD 4.00 MLN |
| 8/18/2026 | USD 6.00 MLN |
- Website customer/investment
- https://babbangona.com/
- Region
- Africa
- Country
- Nigeria
- Sector
- Agribusiness, Food & Forestry
- Publication date
- 8/18/2026
- Deadline for feedback
- 10/17/2026
- Total FMO financing
- USD 24.00 MLN
- Funding
- LUF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+