Last updated February 27, 2013

Partner Description:

Babban Gona Farmer Organization (Babban Gona) is a farmer services organization committed to lifting 5 million smallholder farmers out of poverty by 2030. It targets male and female smallholder farmers who typically have agricultural plots between 1 and 4 hectares in size. Babban Gona operates in the Northern Nigerian state of Kaduna, which has one of the most favorable climates for agriculture in the country.

The organization operates as a franchise model: Babban Gona is the franchisor providing services to franchise farmer groups called Trust Groups made up of smallholder farmer members. The organization offers each Trust Group three types of services:

1) Training and development which includes agronomy, financial literacy, business skills and leadership training.

2) Inputs like seeds and fertilizers on credit.

3) Post-harvest marketing services.  

These services enable farmers to produce high-quality maize at 4 times the yield of the average Nigerian farmer. Farmers also receive high-quality, low-cost inputs and mechanization services on credit to increase productivity and crop yields.

Kiva loans are used to help Babban Gona expand its services to more rural areas in Northern Nigeria. This flexible capital enables the organization’s members to meet their working capital requirements and obtain inputs such as fertilizer and seeds without worrying about repaying immediately.

Babban Gona’s impact:

Babban Gona farmers experience an increase in yield. For example, last planting season, one of the organization’s farmers experienced a yield of 4.6 metric tons per hectare, which is 3 times the national average. In addition, members experience increases in profitability.

At harvest, Babban Gona farmers do not sell their produce on the open market. Instead, the organization markets it on their behalf.This ensures the reduction of post-harvest losses and ensures farmers’ access to premium markets.To enable farmers to meet their short-term cash needs, Babban Gona provides loans in the form of a “harvest advance.” The organization’s best farmer made a profit of $2,500 net of his loans, catapulting him from poverty to the lower middle income bracket.  

In 2012, its first year of operation, Babban Gona formed 16 Trust Groups, reaching 107 farmers and 110 hectares of land under cultivation. In the 2013 planting season, Babban Gona will reach 1,000 farmers on 1,500 hectares.

Babban Gona joined Kiva through our Experimental Partnership Program and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Mar 11, 2013 Oct 12, 2005
Total Loans $205,950 $592,993,000
Amount of raised Inactive loans $0 $779,925
Number of raised Inactive loans 0 606
Amount of Paying Back Loans $175,625 $117,040,575
Number of Paying Back Loans 1,382 124,358
Amount of Ended Loans $30,325 $475,172,500
Number of Ended Loans 133 603,009
Delinquency Rate 0.00% 3.96%
Amount in Arrears $0 $2,989,208
Outstanding Portfolio $175,625 $75,562,521
Number of loanDelinquent 0 11,915
Default Rate 0.00% 1.12%
Amount of Ended Loans Defaulted $0 $5,344,932
Amount of Ended Loans $30,325 $475,172,500
Number of Ended Loans Defaulted 0 16,810
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $538,749
Refund Rate 2.82% 0.77%
Amount of Refunded Loans $5,800 $4,537,625
Number of Refunded Loans 14 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 19.33% 74.19%
Average Loan Size $138 $418
Average Individual Loan Size $138 $656
Average Group Loan Size $0 $1,828
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $1,188 $3,429
Average Loan Size / GDP per capita (PPP) 11.66% 12.19%
Average Time to Fund a Loan 5.13 days 5.61 days
Average Dollars Raised Per Day Per Loan $26.97 $74.53
  Average Loan Term 15.42 months 10.36 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 113 296,539
  Journaling Rate 48.15% 42.37%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.00 1.87

Borrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 21% APR 39.00% PY 33.27% PY
  Profitability (return on assets) N/A 2.5% -1.45%
  Average Loan Size (% of per capita income) N/A 43.00% 40.88%

Country Fast Facts

Field Partner Staff

Tola Sunmonu