Farouk Gumel, the vice chair of Tropical General Investment (TGI) Group, has highlighted the private sector’s transformative potential in addressing the challenges faced by internally displaced persons (IDPs) in Nigeria.
Speaking in an exclusive interview on the sidelines of the UNHCR 2024 Africa Roundtable on Private Sector Solutions to Internal Displacement, held in Lagos recently, Gumel shared insights into how TGI’s operations in rural communities have become a model for sustainable economic inclusion and development.
“We’ve always been in the food business, but we realized early on that ensuring consistent quality and supply for our factories meant more than just setting up processing plants. It meant investing in people—working with farmers in rural areas, many of whom have faced displacement, to empower them to be part of our value chain,” he said.
TGI Group employs an out-grower model where the company collaborates with smallholder farmers, providing them with farming inputs such as seeds, fertilizers, and agrochemicals, extension services by qualified agronomists to help monitor the process and guide them on good agricultural practices, and a guaranteed offtake at prevailing market prices.
Gumel elaborated on the significance of this partnership:
“We don’t own mega-farms or plantations. Instead, we work with local farmers who grow the produce and guarantee to buy everything they harvest. Sometimes, we even offer working capital to help them run their farms effectively. This approach ensures that our factories continue running while communities gain a reliable income stream.”
Beyond the economic aspects, TGI has invested heavily in building capacity within these communities. The company has set up training academies, working with Nigerian universities and institutions to provide certification programs to enhance the competence of beneficiaries.
“It’s not just about teaching someone how to farm better—it’s about giving them the tools, capacity, and recognition to thrive independently. We’ve developed rice and sesame production programs, and participants leave with certificates endorsed by academic institutions. This not only empowers them but also elevates the standards of the entire agricultural sector,” Gumel explained.
Addressing the supportive environment TGI has encountered in Nigeria’s rural areas, Gumel remarked:
“When you go into these communities, you’re welcomed with open arms. The people see the jobs, the opportunities, and the development we bring. It’s not just about formal policies; it’s about the genuine hospitality and mutual respect we share with them. They care for our staff and assets as if they were their own because they understand the value we’re bringing into their lives.”
Gumel also discussed how TGI’s integration into local communities goes beyond just economic partnerships. “You can’t go into a community and just take. It would help if you gave back. That’s why we see it as a corporate responsibility and a moral obligation. When communities see you investing in their future, they invest in you too.”
While lauding the current support from local governments, Gumel acknowledged the need for continued collaboration between the private sector and policymakers to scale such initiatives.
“The private sector can’t do it alone. We need a supportive framework that encourages more companies to enter these spaces. By working together, we can create an ecosystem that addresses the immediate needs of IDPs and builds resilience for the future,” he concluded.
Through its innovative approach, TGI Group demonstrates how businesses can bridge the gap between corporate growth and social impact, setting a benchmark for others.
