For decades, agriculture in Nigeria operated in a paradox.
It contributed significantly to the economy, employed millions of people and remained central to food security, yet a substantial proportion of the sector—particularly smallholder farmers—remained underserved by formal financial institutions, with limited access to credit, insurance and other appropriate financial services.
Smallholder farmers were considered too risky to finance, with most lacking collateral, reliable data or structured records.
It is estimated that only around 6% of African smallholder farmers or rural households access formal credit, although the proportion varies significantly by country and data source.
That problem is now forcing a rethink inside parts of Nigeria’s banking industry.
Increasingly, banks are moving beyond traditional lending and into something closer to ecosystem development — combining finance, technology, climate intelligence and startup incubation to solve structural problems in agriculture.
One example is the evolution of the agritech programme developed by First City Monument Bank.
What started in 2018 as a platform to identify promising startups has gradually evolved into a broader agricultural innovation ecosystem that involves founders, investors, development institutions, and technology partners.
Data is central to this shift.
Rather than relying solely on conventional lending models, agritech ventures increasingly use weather information, soil intelligence, mobile platforms, and digital records to reduce uncertainty around farming activities.
The goal is simple: make agriculture more visible, measurable and bankable.
This transition reflects a larger shift across African agriculture.
Banks are beginning to recognise that financing farmers cannot be separated from solving infrastructure and information gaps.
In many rural communities, the absence of reliable agricultural data makes lending difficult long before repayment issues arise.
That is where technology comes in.
The FCMB report highlights the Bank’s continued commitment to supporting Agtech companies that are leveraging technology to address real-world agricultural challenges and deliver accessible solutions to farmers in local languages, including Hausa, Yoruba, and Igbo.
This significance extends beyond convenience. Many smallholder farmers still operate outside English-speaking digital ecosystems.
Delivering agricultural support in indigenous languages could simultaneously improve adoption, financial inclusion, and productivity.
This also reflects a wider effort to localise technology rather than merely import it.
At the same time, climate pressure is reshaping agricultural financing priorities.
Regenerative farming, climate resilience and sustainability are no longer treated as environmental side conversations.
They are increasingly becoming core financial concerns.
The report highlights plans to expand into climate-informed agriculture and bundled insurance solutions that protect farmers from shocks that often wipe out livelihoods and discourage investment.
Another important shift is geographical ambition.
Several Nigerian agritech ventures are now being positioned for expansion into East African markets, including Uganda and Kenya.
That matters because it suggests Nigerian startups are no longer building solely for domestic survival.
They are beginning to export operational models, technology and agricultural services across the continent.
The implications could be significant.
Africa’s food systems face growing pressure from population growth, climate disruption, insecurity and weak rural financing structures. Governments alone are unlikely to solve these problems.
As a result, financial institutions, startups and development organisations are increasingly working together to fill the gap.
The challenge going forward will be scale.
Many agricultural innovation programmes begin with strong pilot momentum but struggle to move beyond isolated success stories.
Sustained impact will depend on infrastructure, policy support, digital literacy and the ability to build trust within farming communities.
Still, one thing is becoming clear.
Agriculture is no longer just a farming conversation.
It is now a technology conversation, a finance conversation and increasingly, a strategic economic security conversation.
And quietly, banks are positioning themselves at the centre of it.