Nigerian bank using technology to reshape agriculture

For decades, agriculture in Nigeria has been a significant contributor to the economy and food security, yet smallholder farmers have faced challenges in accessing formal financial services. Only around 6% of African smallholder farmers access formal credit, making it difficult for them to obtain loans and insurance. Recognizing this issue, Nigerian banks are rethinking their approach to agriculture by integrating technology, climate intelligence, and startup incubation into their operations.

First City Monument Bank (FCMB) exemplifies this shift with its agritech program. Initially launched in 2018 to identify promising startups, the program has expanded into a broader agricultural innovation ecosystem involving founders, investors, development institutions, and technology partners. Data, such as weather information and soil intelligence, is now essential for reducing uncertainty in farming activities and making agriculture more visible, measurable, and bankable.

Technology plays a crucial role in overcoming the challenges faced by smallholder farmers. Banks are leveraging technology to provide solutions in local languages, such as Hausa, Yoruba, and Igbo, which are spoken by many rural communities. This approach aims to improve adoption, financial inclusion, and productivity, as many smallholder farmers still operate outside English-speaking digital ecosystems.

Climate pressure is also reshaping agricultural financing priorities. Regenerative farming, climate resilience, and sustainability are becoming core concerns in financing decisions. Nigerian agritech ventures are increasingly being positioned for expansion into East African markets, including Uganda and Kenya. This expansion indicates that Nigerian startups are aiming to export their operational models and agricultural services across the continent.

The implications of this trend are significant, as Africa's food systems face growing challenges from population growth, climate disruption, insecurity, and weak rural financing structures. Financial institutions, startups, and development organizations are collaborating to address these issues, with the goal of achieving sustained impact through infrastructure, policy support, digital literacy, and trust-building within farming communities.

Despite the progress, scaling agricultural innovation programmes remains a challenge. Many programs face difficulties in moving beyond isolated success stories. However, it is clear that agriculture is now a technology and finance conversation, as banks position themselves at the center of these evolving dynamics.