ThriveAgric has raised ₦5.3 billion ($3.93 million) through the first series of a commercial paper programme that could reach ₦50 billion ($37.09 million). The funding is set to strengthen the company’s agricultural trading operations in Nigeria, improve access to markets for smallholder farmers and provide more reliable supply for food processors and fast-moving consumer goods companies.
The Series 1 issuance, announced during a signing ceremony and media briefing in Lagos, was oversubscribed after attracting institutional demand above its initial ₦5 billion target. It is ThriveAgric’s first move into Nigeria’s debt capital markets and gives the company another source of funding beyond traditional bank lending.
Funding the link between farmers and buyers
The commercial paper will mainly provide working capital for the purchase and aggregation of produce from smallholder farmers. Rather than funding crop production, which can take between nine and 12 months, the money will support faster transactions in which ThriveAgric buys harvested produce, aggregates it and supplies it to established buyers.
For farmers, this can provide a more reliable route to market. ThriveAgric finances farmers to produce crops and helps connect them with buyers. Part of the harvest can be used to repay financing, while the remaining produce can be sold as surplus.
“Beyond the numbers, this institutional backing provides us with the financial flexibility to scale our operations, deepen our outgrower networks and ensure prompt off-take for smallholder farmers,” Chief Executive Officer Uka Eje said.
Eje said the company was able to secure debt at a rate that was “more conducive” to agriculture. He argued that access to affordable and suitable financing is important for making the sector more scalable and sustainable.
The planned ₦50 billion programme could give ThriveAgric greater capacity to keep capital moving between farmers, commodity purchases and buyers. The company expects to make further commercial paper issuances as it works towards completing the programme over the next 12 months.
“This is why it’s not equity; it is debt to expand our business in Nigeria,” Eje said, adding that financing can make agriculture more scalable when the cost and structure of capital are appropriate.
The company will focus the new funding on deepening its operations in Nigeria rather than expanding into new countries. ThriveAgric currently operates in Nigeria, Ghana, Kenya, Uganda and Rwanda, with Nigeria accounting for about 90% of its business.
Building a stronger agricultural financing system
Founded in 2017 by Eje and Ayodeji Arikawe, ThriveAgric has built its business around providing smallholder farmers with financing and access to markets. The company now serves more than 1.3 million farmers across 26 Nigerian states and works with about 5,000 field agents.
Its Agricultural Operating System collects and manages data across the farming cycle, including farmer onboarding, farm information, input distribution, field monitoring and inventory management. The company believes this data could eventually help financial institutions assess farmers and provide credit based on their transaction history and farming activity.
The latest funding builds on ThriveAgric’s $56.4 million debt financing secured in 2022 from commercial banks and institutional investors. The company has also raised about $61.3 million in total funding, according to Crunchbase.
Anchoria Advisory Services served as the lead issuing house, with BAS Capital, Mulberry, FCMB Capital Markets and FCSL also involved in the transaction. Anchoria Managing Director Damilola Titiladunayo said the firm’s role was to structure ThriveAgric’s operations into a bankable capital markets instrument, adding that investor demand supported the work.
“The initial problem we’ve always faced has been accessing the right capital,” Eje said. “We see this as a major landmark because we’ve been able to access the capital that will help us unlock the opportunities in the sector.”
