Uncommon Facts About Smallholder Farmers in Nigeria

smallholder farmers in Nigeria

With more than 80% of Nigerian farmers being smallholder farmers, smallholder farmers in Nigeria are the heart of food production in Nigeria. We will be looking at uncommon facts about this unique group of farmers who hardly get little or no credit for their contribution to the agricultural sector and the Nigerian economy at large.

The term “smallholder farmers” is typically used to describe farmers who own small plots of land (in Nigeria – less than 5 acres of land) which they use to farm subsistence crops and one or two cash crops. Family members are usually involved in farming activities and labour. Smallholder farmers are primarily located in the rural areas of the country. About 70% of people living in rural areas of the country are smallholder farmers.

Here are uncommon facts about smallholder farmers in Nigeria

  1. They Account for 90% of Nigeria’s Agricultural Produce
  2. There are About 38 million Smallholder Farmers in the country
  3. They Practise Diversified Agriculture
  4. More Than 72% Live Below the Poverty Line
  5. Major Problems Affecting Their Profitability and Productivity

1. They Account for 90% of Nigeria’s Agricultural Produce

Despite farming on small plots of land, the collective numbers of smallholder farmers drive food production in Nigeria, they account for 90% of the agricultural produce in Nigeria. They are also responsible for about 98% of food consumed in Nigerian homes, with wheat as the only exception.

One of the major causes for inflation in food prices in the country this year is due to smallholder farmers being unable to visit their farmlands, because of the rising insecurity in the rural areas of northern Nigeria. This has reduced the level of food security, production and supply in the country.

2. There are About 38 Million Smallholder Farmers in Nigeria

There are about 38 million smallholder farmers in Nigeria (20% of the country’s population). The Minister of Agriculture and Rural Development, Audu Ogbe, in a statement at the first Unity Food Fair organised by the National Council for Women’s Society (NCWS), revealed that 70% of Nigeria smallholder farmers are women, while the rest of the 30% are males.

3. They Practise Diversified Agriculture

Contrary to preconceived notions that smallholder farmers in Nigeria focus solely on crop farming, a significant number of smallholder farmers also raise livestock. A recent study showed that about 67% of smallholder farmers surveyed grow crops as well as raise livestock. The study also revealed that more than half of the smallholder farmers raise livestock for consumption and income, while a few raise it for consumption only.

4. More Than 72% Live Below the Poverty Line

Despite the contributions of smallholder farmers to food production in Nigeria and their importance to the Nigerian economy, over 72% of them live below the poverty line of $1.9 per day. 

However, smallholder farmers say they are able to provide for their family basic needs, according to this report. Their major expenses are buying groceries and paying for transport.

5. Major Problems Affecting Their Profitability and Productivity

Different studies on the constraints and problems faced by smallholder farmers in the country have revealed that lack of access to market information, poor access to credit facilities, little or no support, and high cost of farm input have been major hindrances to their profitability and productivity.

Babban Gona is making farming more profitable for smallholder farmers by providing them with training, access to high-quality farm input, credit facilities and marketing their farm produce to profitable markets. Babban Gona has reached over 200,000 smallholder farmers and increased their net incomes to twice the national average.

3 thoughts on “Uncommon Facts About Smallholder Farmers in Nigeria”

  1. UMAR MUHAMMAD MUSTAPHA

    I am encouraged by the laudable support provided to smallholder farmers, may your organisation sustain the tempo so that their productivity standard will be high.

    1. UMAR MUHAMMAD MUSTAPHA

      I am impressed and encouraged by the laudable support provided to smallholder farmers, may your organisation sustain the tempo so that their productivity standard will be high.

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Frank Altman

Non-Executive Director

Pioneer of secondary markets for community development and $3.5B+ in managed funding.

Frank Altman is the founder and first CEO of the Community Reinvestment Fund (CRF), USAwhere he pioneered secondary markets for economic development loans. Under his leadership, CRF funded over $3.5 billion in loans across 50 U.S. states. He was instrumental in designing the federal New Markets Tax Credit and is an advisor to the Federal Reserve Bank of San Francisco.

Altman is an Ashoka Senior Fellow and the author of A New Capitalism: Creating A Just Economy That Works For All. He brings global expertise in risk management and capital structures to Babban Gona.

Michael Jainzik

Independent Non-Executive Director

Michael Jainzik works as an independent consultant and brings his extensive expertise in the areas of agricultural finance, international investments, risk management and corporate governance. He is currently based in Rome, Italy.
 
From 2001 to 2011, Michael worked as an investment professional at KfW Development Bank, focusing on international debt financing and equity investments in investment funds and banking institutions, mainly in the areas of agricultural finance and microfinance. From 2011 to 2015 he worked as Director of KfW’s office in Windhoek. In this role, he helped manage and develop KfW’s EUR 250 million portfolio in Namibia. From 2015 to 2017, he took on the position of Head of Corporate Development at Access Microfinance Holding, where he was responsible for structuring and leading a merger process between Access Holding and another company.
 
Prior to joining Babban Gona, Michael served as a non-executive director in Access Bank Azerbaijan (2006-2011, Chairman), Belarusian Bank for Small Business (2008-2011), Rural Impulse Fund II Luxemburg (2010-2011) and AB Bank Zambia (2011-2016).
 
Michael studied economics and management at the Universities of Lüneburg and Witten/Herdecke (Germany) and at ETEA – Universidad Loyola in Córdoba (Spain) and holds a Master’s degree in economics and management.

Alhaji Bello Maccido

Board Chairman

Over 32 years of executive leadership in corporate and investment banking.

Alhaji Bello Maccido is a distinguished leader in the Nigerian financial services sector. He currently serves as the Chairman of FBN Merchant Bank Ltd. and has previously held board positions at FBN Holdings Plc, First Bank of Nigeria Plc, and Legacy Pension Manager Limited.

He holds the traditional title of “Wakilin Sokoto” and is a Fellow of both the Chartered Institute of Stockbrokers and the Chartered Institute of Bankers of Nigeria.

Alhaji Maccido’s educational background includes an LL.B from Ahmadu Bello University and an MBA from Wayne State University. He is a Barrister at Law (BL) of the Supreme Court of Nigeria and an alumnus of executive programs at Harvard Business School and IMD Lausanne.

Muhammad Sanusi, CON

Chairman of the Board

His Highness Muhammad Sanusi was appointed the 10th Governor and Chairman of the Board, Central Bank of Nigeria on 3 June 2009. He earned Bachelor’s and Master’s degrees in Economics from the Ahmadu Bello University, Zaria, and also has a first-class degree in Sharia and Islamic Studies from the African International University, Khartoum, Sudan.
 
From working as a lecturer at the Ahmadu Bello University, where he taught Economics, he joined the banking industry in 1985, and by January 2009 had risen to General Manager and Group Managing Director of First Bank of Nigeria PLC, Nigeria’s oldest and biggest bank. Mallam Sanusi has been conferred with a National Award of Commander of the Order of the Niger (CON) by the President of the Federal Republic of Nigeria and has also been awarded the “Global Central Bank Governor for 2010” by The Banker Magazine, a publication of the Financial Times.
 
He was also voted Central Bank Governor of the Year for Sub-Saharan Africa 2009 (an award he won again in 2010) by Emerging Markets, a publication of Euromoney Institutional Investors. In 2011, Mr. Sanusi was named Forbes Africa Person of the Year for 2011. He was also listed by TIME Magazine as one of the 100 most influential people in the world. Kola Masha (Managing Director) Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore.

Lola Masha

Non-Executive Director

Dr. Lola Masha is a seasoned technology leader with over 15 years of experience at the intersection of mobility, technology, and agriculture. She currently serves as a Partner at Antler, a global early-stage venture capital firm. Previously, she was the Regional General Manager for North, East, and West Africa at Bolt, overseeing strategic operations in a high-growth mobility sector.

Her career includes leadership roles as Director of Trust and Safety at OLX Group (overseeing 30+ markets) and Country Manager for OLX Nigeria. She was also one of the earliest employees at Google Sub-Saharan Africa. Dr. Masha holds a PhD in Chemical Engineering from the University of California, Berkeley, and a B.Sc. from the University of Virginia.

Kola Masha

Managing Director

First leader of a for-profit social enterprise to win the Skoll Award for Social Entrepreneurship.

Prior to co-founding Babban Gona, Kola was CEO of a subsidiary in the Notore Group, where he led a commercial strategy to sell one million tons of fertilizer and raised $130 million in equity.

He has held leadership roles at GE and Abiomed and served as a Senior Advisor to the Nigerian Minister of Agriculture.

Under his leadership, Babban Gona became the first for-profit social enterprise to win the prestigious Skoll Award for Social Entrepreneurship, recognizing the organization’s innovative approach to transforming smallholder farming in Nigeria.

He holds an MBA with Honors from Harvard and a Master’s in Mechanical Engineering from MIT.

Kola Masha

 

Prior to Babban Gona, Kola was a Managing Director and CEO of a major subsidiary in the Notore Group, one of Nigeria’s leading agricultural conglomerates, where he raised US$24 Million to develop an integrated agricultural trading, production and processing business.

Furthermore, he led the development and execution of Notore’s commercial strategy across West and Central Africa, preparing the company to sell one million tons of fertilizer and establish a modern seed business.

He led the effort to raise $130 million in equity and the restructuring of $360 Million in debt. Kola brings significant leadership experience in venture capital, corporate finance, business development, marketing and operations, across four continents with multiple global companies, including GE, Notore and Abiomed. In addition, Kola brings extensive public sector experience as Senior Advisor to the Nigerian Minister of Agriculture.

In recognition for his leadership in driving positive change on the African Continent, he has received several global awards including the prestigious Eisenhower Fellowship, a leading leadership institute led by General Collin Powell and appointed to the Board of the African Enterprise Challenge Fund, a $250 Million fund that awards grants and repayable grants to private sector companies to support innovative business ideas in agriculture, agribusiness, renewable energy, adaptation to climate change and access to information and financial services. Kola holds an MBA (Honors) from Harvard and a Masters in Mechanical Engineering from the Massachusetts Institute of Technology.