Evaluation of an Agritech Pilot in Abuja

A key constraint to farmer incomes and productivity growth in agriculture in Nigeria is the presence of middlemen, such as those who provide finance. While middlemen could ease input constraints for farmers, many capture benefits that were meant to reach farmers.

SOAS-ACE is evaluating a pilot in Abuja that involves ‘tokenising’ smallholder farmers’ assets, as a means of improving their access to credit.

The ‘tokenisation’ model, called Agrifi, converts physical and intangible assets of farmers into nonfungible tokens (NFTs), establishing a digital profile that mirrors a credit score or business presentation. This digital asset serves as collateral and boosts transparency and trustworthiness in farmers’ enterprises, attracting investor interest. By employing tokens for each farmer, a secure and unalterable identity verification is achieved. This method affirms clear ownership and origin of the investment product, simplifying the trust relationship between farmers and investors.

Further, combining individual farmer profiles into diversified investment portfolios should create a reduced risk profile for investors and provide greater confidence in agricultural financing, providing farmers with better access to credit.

Our evaluation will measure whether the pilot leads to increased farmer incomes and whether better access to credit. We will also assess farmers’ perceptions of digitisation. Finally, we will track changes in rule-following behaviour.

SOAS-ACE is currently undertaking research in Bangladesh and Nigeria, including in the education, health and power sectors, as well as on successful collective action that overthrew a corrupt autocracy. Moving beyond pure research, we are also monitoring the implementation of anti-corruption strategies our research has recommended, such as a strategy to reduce pharmaceutical companies’ overpricing of medicines.

Our partners are this project are Toronet/Voriancorelli.