Could blockchain redefine farming in Nigeria? The All Farmers Association of Nigeria (AFAN) and Africa Harvest Capital (AHC) think so.
Their new Memorandum of Agreement (MoA), signed in Abuja, promises to bring millions of farmers into a transparent, data-driven agricultural ecosystem.
This partnership aims to transform how Nigerian farmers operate, offering unprecedented opportunities for efficiency, financing, and global market access.
What is the AFAN–AHC Blockchain Initiative?
The MoA between AFAN, the umbrella body representing millions of Nigerian farmers, and AHC, a pan-African technology and investment group, introduces blockchain technology to modernise agriculture in Nigeria.
The initiative focuses on two key components:
- Blockchain Registry for Farmers: AFAN’s membership base will be onboarded onto a blockchain platform, ensuring secure and transparent management of agricultural data and transactions.
- Real-World Asset (RWA) Tokenisation: Agricultural commodities like crops and livestock will be converted into tradeable digital assets, enabling farmers to access new financing models and international markets.
Key Features of the AFAN–AHC Partnership
The MoA outlines several transformative features designed to empower Nigerian farmers:
- Farmer-Focused Community Tokens: Digital tokens will support cooperative engagement, stimulate local transactions, and encourage grassroots economic resilience.
- Integrated Services: The blockchain platform will embed insurance, geo-mapping, data analytics, and training to improve farmer productivity and sustainability.
- Global Market Integration: Tokenised commodities will allow Nigerian farmers to reach international buyers, positioning Nigeria as an agricultural innovation hub.
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Why Blockchain Matters for Nigerian Agriculture
Agriculture remains central to Nigeria’s economy, contributing about 25% of GDP and employing millions, mostly smallholder farmers (FAO).
Yet challenges like ₦3.5 trillion in annual post-harvest losses, limited financing, and opaque supply chains persist.
Blockchain technology offers solutions by:
- Enhancing Transparency: Immutable records build trust and reduce fraud.
- Improving Market Access: Farmers can directly connect with global buyers via tokenised assets.
- Facilitating Financing: Crops as digital collateral unlock loans and credit.
- Boosting Efficiency: Geo-mapping and analytics help farmers optimise production.
Addressing Concerns: The Tingo Connection
The initiative has sparked debate due to AHC’s Country Executive, Auwal Tahir Maude, also serving as CEO of Tingo Nigeria, a company linked to a 2023 SEC fraud case involving Tingo Group.
The U.S. Securities and Exchange Commission fined the group $250 million for inflating financial results.
While AHC has not clarified its connection to Tingo, the AFAN partnership appears to be a distinct effort to apply blockchain for agricultural advancement. Transparency and accountability will be critical as the project unfolds.
Blockchain and Agriculture Across Africa
Nigeria’s initiative is part of a larger continental shift where blockchain is reshaping agriculture:
- Ghana: Blockchain supports cocoa traceability for fair farmer payments.
- South Africa: Banks like Nedbank explore smart contracts in agri-finance.
- Continental Growth: Africa’s food and agriculture market could reach $1 trillion by 2030 (World Bank), with blockchain unlocking this potential.
By adopting blockchain, Nigeria is positioning itself as a leader in agricultural innovation. The AFAN–AHC partnership may not only tackle inefficiencies in Nigeria’s farming sector but also set a model for other African nations.
For millions of farmers, this could mark the beginning of a digitally inclusive agricultural economy.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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