Agritech startups transforming Nigeria's agriculture

Agriculture is a cornerstone of Nigeria's economy, contributing 24.43% to its GDP, and employing millions of people

Despite this, Nigeria is only utilising less than half of its 73 million hectares of arable land. Challenges like poor infrastructure, limited funding, unreliable supply chains, and a lack of modern tools for smallholder farmers have prevented the sector from reaching its potential. However, a new wave of agritech startups is driving change by providing digital solutions, data, and smart tools to empower farmers, improve yields, and reduce waste.

As of 2024, Nigeria is home to 230 agritech startups, a significant increase from just 23 in 2022. Despite the sector's growth, agritech still lags in funding compared to fintech. In 2024, agritech startups across Africa raised US$65mn, with the majority directed toward marketplaces and fintech-related agritech. Meanwhile, Nigeria’s fintech sector has attracted substantial investments, highlighting the imbalance between agriculture’s importance to the economy and its investment levels.

Despite the hurdles in market penetration and funding, several agritech startups are making significant strides. One notable example is Thrive Agric, founded in 2017, which helps farmers access financing, inputs, and markets. Thrive Agric has assisted over 500,000 farmers and facilitated the production of more than 1.5 million metric tonnes of grains. Although it faced setbacks during the COVID-19 pandemic, the company raised US$56.4mn in 2022 to expand its reach, particularly in Northern Nigeria.

Another player, Releaf, focuses on the mechanisation of agriculture, starting with oil palm processing. By developing the Kraken, a machine that de-shells palm nuts faster and more efficiently, Releaf has helped smallholder farmers and food factories reduce waste and improve productivity. The startup raised US$4.2mn in seed funding in 2021.

ColdHubs addresses the issue of perishable food loss by providing solar-powered cold storage solutions. Founded in 2015, ColdHubs allows farmers and vendors to store fresh produce for up to 21 days, cutting down food waste and increasing income. Despite not having public records of funding, ColdHubs has earned global recognition, including a US$110,000 grant.

Crop2Cash, established in 2018, bridges the financial gap for smallholder farmers by providing a USSD-based platform for digital banking and financial services. With more than 500,000 farmers benefiting from the platform, Crop2Cash has raised funds from Google for Startups and Village Capital to expand its services.

Founded in 2017, AgroMall focuses on enhancing farmers’ access to digital financial services and agronomic advice. Its platform, AgroMall Digital Agriculture Platform (ADAP), helps farmers gain better access to markets, crop insurance, and input credits, improving transparency in the agricultural value chain.

Despite the progress these startups are making, insecurity remains a major challenge. Farmers in northern and central Nigeria are often displaced by violence, disrupting harvest cycles and increasing operational costs. These security risks can limit the potential of agritech, highlighting the need for a more comprehensive approach to tackling agricultural challenges.

The growth of these agritech companies is a step towards transforming Nigeria's agricultural sector. Innovations that empower farmers, improve food security, and reduce waste are increasingly vital, and the upcoming Lagos Startup Expo 2.0, scheduled for June 18-19, 2025, will offer a platform to showcase these solutions.