Sowing the Seeds of Growth: The Legal Landscape for Agritech Investment in Nigeria

As Nigeria intensifies its focus on food security and economic diversification, the agritech sector has emerged as a focal point for venture capital and development finance. By 2025, the sector is moving beyond nascent startups to more mature companies seeking to scale. However, this growth is occurring within a complex legal environment that requires careful navigation.

A primary legal hurdle for agritech companies involved in direct farming or large-scale processing is the land tenure system. The Land Use Act vests all land in the state governor, making outright acquisition complex. Investors and agritech firms must become adept at structuring long-term leases, community land-use agreements, and joint ventures. Diligence on land title, zoning, and potential community disputes is paramount. For platforms that aggregate smallholder farmers, the legal challenge is different: creating enforceable contracts with thousands of individuals who may have informal or customary land rights, not formal titles.

The regulatory framework for agricultural inputs like seeds, fertilizers, and pesticides is another critical area. Agritech platforms that provide these inputs to farmers must ensure compliance with regulations from bodies like the National Agricultural Seed Council (NASC). There are legal risks associated with product liability, quality assurance, and the intellectual property of seed varieties. As companies scale, they must build robust legal and compliance frameworks to manage their supply chains effectively.

Furthermore, the digital aspect of agritech brings its own legal issues. Platforms that provide market linkage, financing, or advisory services are processing significant amounts of farmer data, bringing them under the purview of the Nigeria Data Protection Act (NDPA). Ensuring data privacy and obtaining proper consent for data use are critical. For those involved in commodity trading or financing, the rules of the SEC-regulated commodity exchanges and the legal structure of financial products (e.g., micro-loans, insurance) must be carefully considered. The successful agritech company in 2025 will be one that combines technological innovation with sophisticated legal structuring.