Since the early 2010s, Nigeria’s agriculture has been quietly undergoing a shift, thanks to agritech companies stepping in to tackle the challenges smallholder farmers face. Their solutions, quite extensive, include access to better inputs, credit, markets, and mobile technology, among others.
Sure, the adoption of these technologies has been slow, but it’s gaining ground. And with it comes some huge potential just waiting to be tapped into. So, what exactly does tech-based farming mean for Nigeria? Let’s dig into the market opportunities.
Tech-Based Farming in Nigeria: A Glance!
Tech-based farming in Nigeria is still in its nascent stage. While the potential is immense, only the surface has been scratched in regards to what technology can offer to agriculture.
On a global scale, external capital is flooding into the upstream agriculture and food-tech industry. Report by AgFunder reveals that global investments reached $29.6 billion in 2022. Africa’s share, though very meagre with over $636 million, still shows that opportunities are rising and set to expand.
In our previous articles at Agritech Digest, we’ve explored some of these tech-based farming innovations. But in case you missed it, here’s a quick recap: Technologies like precision farming tools, mobile agriculture platforms, and advanced irrigation systems are reshaping how farmers operate.
Slowly but steadily, Nigerian farmers are starting to tap into these tech-based solutions that aim to enhance efficiency, provide real-time information, and help to optimise resource use.
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That said, here are the market opportunities for tech-based farming in Nigeria.
Market Prospects for Tech-Driven Farming in Nigeria
The prospects include:
1. Mobile Agriculture Platforms
Nigeria’s mobile penetration is quite impressive. It stands at about 87% with 172 million mobile subscribers. The nation is also experiencing a smartphone wave, with forecasts predicting that smartphone users will surpass 140 million by 2025. (MCP Insights).
Such impressive mobile penetration opens the door for innovative mobile agriculture platforms. Apps such as TradeBuza offer the potential to connect farmers with vital services, investors, and even buyers. That connectivity will not only enhance operational efficiency but also help to enhance farmers’ incomes.
2. Mechanisation Services
A good chunk of Nigerian farmers are still stuck with manual labour, which means lower productivity and a lot of effort. Mechanisation offers a way out. Platforms like Hello Tractor are already stepping in, letting smallholder farmers book tractors on demand.
Such services reduce backbreaking labour—just machines doing the heavy lifting. The beauty of this is that there’s a growing market for “mechanisation-as-a-service,” and some real opportunity lies in the rural communities.
3. E-Commerce for Agricultural Inputs
For a lot of Nigerian farmers, getting their hands on quality seeds, fertilisers, or pesticides can be a hassle. And, middlemen don’t make it any easier, often jacking up prices. But e-commerce could solve this issue.
Platforms like EZ Farming are bridging this gap by selling agricultural inputs directly to farmers without the middleman drama. What’s more, they bundle these products with agronomic advice and home delivery. As more farmers warm up to the idea of buying supplies online, this e-commerce market is only going to grow and expand.
4. Agri-Fintech Solutions
Money—more specifically, the lack of it—is one of the biggest challenges Nigerian farmers are facing, especially the smallholders. To solve that problem, agri-fintech has proven to be a viable option. More recently, tech-based farming solutions in Nigeria are weaving financial services into their offerings, such as microloans, crop insurance, and digital payments that are tailored to the needs of farmers.
Platforms like Thrive Agric are giving farmers direct access to investors who help fund their operations, while others like Farmkart allow farmers to invest in projects. Here lies a massive opportunity for fintech companies to innovate around agricultural finance to offer farmers the capital they need to grow.
5. Irrigation Technology
Water is a precious commodity, especially in the northern parts of Nigeria where irregular rainfall is a constant challenge. That’s why affordable and efficient irrigation systems are a goldmine for companies willing to invest.
Options like solar-powered irrigation or IoT-driven water management tools can help to keep crops alive during dry spells, and also help farmers manage resources better. As climate change continues to throw a wrench into traditional farming methods, the demand for tech-driven irrigation could rise in the coming years.
6. Supply Chain and Logistics Solutions
Post-harvest losses are a massive headache for Nigerian and African farmers, largely due to weak transportation and outdated storage systems. However, smart tech solutions could end this sad story. Real-time tracking, improved logistics, and cold storage solutions can change how food moves from farm to market.
Platforms like Pricepally are tackling these logistics gaps by linking farmers directly with retailers and slashing inefficiencies in distribution. No doubt, the supply chain is primed for innovation and tech-based investments are ready to untie the knots.
7. Precision Farming Tools
Precision farming is one of the most exciting prospects in tech-based agriculture for Nigeria. You can think of drones, GPS-guided tractors, and soil sensors working in tandem to monitor crop health, soil quality, and pest populations.
These tools, quite futuristic, can help Nigerian farmers make smarter, data-backed decisions to optimise water, fertiliser, and pesticide usage while slashing costs. And the results? Higher yields and healthier crops. But here is the catch: once these precision tools become more affordable, there will be more demand from both small and large-scale farms.
8. Data Analytics and AI for Decision-Making
Data is transforming agriculture globally, and Nigeria is no exception. Agri-tech companies offering AI-driven data analytics to help farmers predict weather patterns, optimise planting schedules, and monitor soil health are filling a critical gap in decision-making.
A vivid example is the toll-free hotline for agriculture launched by Crop2Cash in July 2024. The AI-powered system provides real-time, personalised agricultural advice to smallholder farmers in their local languages all without internet access.
9. Government and Development Partnerships
Collaborating with government bodies or international organisations opens doors for businesses to scale and access support for tech solutions that align with Nigeria’s agricultural goals. Initiatives like the Anchor Borrowers’ Programme (ABP) and the Agricultural Transformation Agenda (ATA) are proof of this potential.
The future of tech-based farming in Nigeria will likely be shaped by public-private collaborations that create space for companies to develop scalable and cost-effective solutions that benefit the entire agricultural ecosystem.
Wrap Up
The market opportunities for tech-based farming in Nigeria are immense and diverse. From mobile platforms and precision farming tools to agri-fintech solutions and supply chain technologies, there’s a wealth of innovation waiting to be scaled.
For businesses and investors, tapping into Nigeria’s agricultural sector offers a chance to not only generate profit but also to address critical challenges such as food insecurity, low productivity, and climate resilience.