The rural space is home to 53 percent of Nigeria's population and more than 70 percent of its poor. While it is well understood in Nigeria that financial exclusion of the rural population stunts development, still fewer than 2 percent of rural households have access to any sort of institutional finance.
Participatory Guarantee Systems (PGS) and short organic supply chains have emerged as promising solutions for smallholder farmers to provide organic produce to nearby consumers. PGS is an institutional innovation that builds trust among producers, traders and consumers through a low-cost transparent and participatory certification mechanism. They have particularly gained a foothold among smallholder farmers in middle- income countries, where third-party certification costs are often unaffordable.