In a country where agriculture stands at the bridge between tradition and innovation, AgriTech (Agricultural Technology) in Nigeria imposes itself as a solution to long-standing challenges. As we examine this newly growing market, AgriTech startups and SMEs are turning obstacles into new opportunities, offering sustainable solutions to redefine the future of farming. The question arises: Is investing in Nigeria’s Agritech a risky venture, or an opportunity for bold investors?
The Evolution of Nigerian Agriculture paving the way for AgriTech
Agriculture in Nigeria is vital for the country’s survival, sustaining the livelihoods of 224 million citizens. It contributes to 26% of the GDP and employs 36% of the workforce (GSMA). Once a dominant force in the 1960s, today it has faced a significant decline due to lower productivity of crops, poor infrastructure, and funding gaps. Leaving 66 million small-holder farmers in Nigeria struggling in the face of a rapidly growing demand and market. Cassava, yam, rice, cocoa, and many other crops that were once a staple of Nigeria’s agricultural strength, reflect today an unexploited potential due to inefficiencies in limited resources and inefficient supply chains. This environment created an urgent need for innovative solutions that would minimize the costs required to propel improvements, paving the way for AgriTech. Leveraging digital tools and technologies, AgriTech startups are transforming the landscape and future of agriculture, offering innovative and sustainable solutions.
The emergence of AgriTech SMEs
SMEs serve as a bridge between farmers and the market, addressing several challenges, fostering sustainable farming practices, and achieving greater productivity. Nigeria particularly stands out in that sector. As of December 2024, Nigeria counts over 230 AgriTech companies (Fintech News Africa, 2024). The most notable ones are ‘Thrive Agric’, and ‘Farm Crowdy’ which hold online platforms that allow investors to invest in farming projects. ‘Hello Tractor’ is another one that provides renting services and data analytics of farm equipment. ‘ReLeaf’, offers logistical solutions from farmers to food companies, meaning that they use technologies to increase the output of pre-industrialised food more sustainably.
Figure 1: Examples of the top AgriTech companies in Nigeria
Source: Raithatha, Rishi. AgriTech in Nigeria: Investment Opportunities and Challenges, GSMA, 2020
These SMEs offer solutions to logistical issues and adapt to modern farming techniques, improving crop yield productivity and income from farmers to large-scale producers, improving the economic sector, but also the livelihoods of the population. These companies contribute to food security, rural development and solidify Nigeria’s position as a leader in the African and global agricultural, and more specifically AgriTech sector.
Strengths and weaknesses of AgriTech investment opportunities
Investing in Nigeria’s AgriTech sector seems to be a timely and promising opportunity. The country’s large agricultural base, strong market demand, and increasing adoption of technologies create significant opportunities. Nonetheless, challenges like policy inconsistencies or funding gaps can hinder its growth. For a clearer perspective on investment potential, we can take a look at the SWOT analysis figure:
Figure 2: SWOT analysis of AgriTech SME investment in Nigeria
This analysis provides valuable insights into the factors driving and hindering growth in this sector. Studying the market of AgriTech and Nigeria’s environment will provide the necessary tools to seize investment opportunities in Agritech in the country.
Examining the external factors shaping Nigeria’s AgriTech Sector
Following the same thought, understanding the external environment is essential for evaluating the potential investment growth of Nigeria’s AgriTech sector. Through a PESTEL analysis, we can better understand the political landscape, economic opportunities, social dynamics, technological improvements, legal framework, and environmental factors that shape the dynamics in this industry.
Figure 3: PESTEL Environment Analysis for AgriTech SMEs in Nigeria
If we break it down, we can see that the Nigerian government successfully implemented policies designed to facilitate and put the focus on improving agricultural production. Economically, the demand is higher than ever before and the digitalization used by AgriTech companies reduces and minimizes the costs of infrastructures. The social environment welcomes these SMEs with open arms, as not only is there a large consumer base for these companies, but the need for food security is growing exponentially. Technologically, we have a development in the use of technologies in the country, as well as an increase in the use of mobile devices in rural areas, which allows smallholder farmers to use apps like those made by Farm Crowdy, Hello Tractor or ThriveAgric. Environmental factors, such as an increase in climate change awareness create the demand for sustainable agricultural techniques and mitigate climate-related risks. Lastly, better regulations have been put in place, such as land reforms, or enabling money-services by non-banks to be accessed on mobile. Overall, despite some weaknesses and threats, the challenges of investing in AgriTech are outweighed by the environment’s promising opportunities for investment.
Final thoughts and key takeaways
AgriTech in Nigeria illustrates how innovation can transform vital sectors such as agriculture. Despite challenges such as lack of funding or insufficient infrastructure, the investment opportunities are significant, backed by a growing demand for sustainable farming using digitized tools. AgriTech SMEs play a key role in linking farmers to the market, reinforcing the importance and need for food security sustainably. Investing in this sector promises ROIs that are both financial and social.
Bibliography / References
Raithatha, Rishi. AgriTech in Nigeria: Investment Opportunities and Challenges. GSMA, April 2020. www.gsma.com.
“AgriTech.” Mobile for Development, 23 Oct. 2024, www.gsma.com/solutions-and-impact/connectivity-for-good/mobile-for-development/agritech/.
“Nigeria: Agri-Tech Startups by Sub-Sector 2022.” Statista, www.statista.com/statistics/1338908/share-of-agri-tech-startups-in-nigeria-by-sub-sector/.
Thriveagric.com, 2025, thriveagric.com/
Tracxn. “Top 5 Startups in AgriTech in Nigeria in Nov, 2024 – Tracxn.” Tracxn.com, Tracxn, 15 June 2023, tracxn.com/d/explore/agritech-startups-in-nigeria/__GrUYu_scQ6k05S-MOlUGgGrNlO-Vm3D8bef8FSmwQmA/companies#t-1-thrive-agric.
Imonikhe. “Agritech in Nigeria: Pros and Cons.” Agritech Digest, 28 Oct. 2024, agritechdigest.com/agritech-in-nigeria-pros-and-cons/.
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