Nigerian agritech company ThriveAgric has raised an oversubscribed ₦5.3 billion, approximately $3.93 million, through its debut commercial paper issuance in Nigeria’s debt capital markets. The raise exceeded the company’s ₦5 billion target and will be used to strengthen working capital, fund commodity aggregation and procurement, expand its outgrower network and scale agricultural trading across its hubs.
The issuance is part of a ₦50 billion commercial paper programme approved by the Securities and Exchange Commission, enabling ThriveAgric to pursue additional short-term financing as its capital needs grow. Unlike equity funding, commercial paper allows the company to borrow from investors for a defined period while preserving ownership. The structure is suited to ThriveAgric’s working-capital needs, including commodity procurement, farmer support and supply-chain operations.
ThriveAgric uses technology to connect smallholder farmers with financing, inputs, technical support and markets. The company says its network now serves more than 1.2 million farmers and has facilitated over $150 million in financing, alongside expanding aggregation hubs and storage infrastructure.
The oversubscribed raise reflects investor confidence in ThriveAgric’s business model, governance and financial management. It also highlights commercial paper as an alternative to venture capital, bank loans and equity financing for established agritech companies with predictable working-capital requirements, particularly as African startups face a more selective venture capital market focused on sustainable growth, revenue and capital efficiency.
For ThriveAgric, the deal provides more than immediate liquidity. It gives the company access to institutional capital that can be matched to the timing of its agricultural operations, helping it purchase commodities, support farmers and expand its trading network without diluting existing shareholders. The larger ₦50 billion programme also creates a framework for future issuances, giving ThriveAgric greater flexibility as its financing needs increase.
The transaction matters for African agritech financing because it shows that a company in the sector can move beyond grant funding and venture capital to raise debt from local capital markets. If ThriveAgric demonstrates that commercial paper can finance agricultural growth while meeting investor expectations, other agritech companies with established revenues and working-capital cycles may gain a credible model for accessing institutional funding. That could broaden the financing options available to African startups and direct more capital toward the infrastructure, supply chains and farmer networks needed to scale agriculture across the continent.
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