AgriTech in Nigeria: Investment opportunities and challenges
Nigeria has seen a rapid growth of agritech companies offering digital solutions aiming to address the challenges faced by smallholder farmers and to improve their livelihoods. While some agritech start-ups have transitioned into established companies, only a handful have scaled. Barriers to scale include a challenging business environment, an ecosystem unable to support long-term growth, low levels of agricultural knowledge and skills, and limited access to and awareness of funding opportunities. Funders active in the Nigerian agritech space include incubators, accelerators, angel investors and donors, all of which tend to invest during early funding stages.
Despite this, Nigerian agritech companies face three major funding gaps: limited availability of local capital, a lack of institutional investors investing in agritech and an inability to attract big-ticket investments. This report offers a landscape of the evolution of agritech investment in Nigeria, and the role played by different investors in the growth of the sector. We share investment trends in Nigerian agritech, identifying possible opportunities for agritech companies to grow further and how investment could “crowd in” additional resources.