AFAN’s blockchain partnership sparks concerns over Tingo connection

The All Farmers Association of Nigeria (AFAN) has signed an agreement with African Holdings Corporation (AHC) to integrate blockchain technology into the country’s agricultural sector, including establishing blockchain infrastructure for AFAN’s membership base and the tokenization of farm produce.

However, the partnership raises concerns given that AHC’s Country Executive, Auwal Tahir Maude, currently serves as CEO of the controversial Tingo Nigeria.

Partnership details

• According to the press release, every AFAN member will be registered on a blockchain platform providing data management, transparent transactions, and global market access.
• The system will create tokens backed by agricultural commodities, allowing farmers to use crops as digital assets for trading and financing.
• AFAN President Farouk Rabiu Mudi described the move as “a bold step into the future for Nigerian farmers,” saying blockchain tools would improve efficiency, traceability, and competitiveness.
• Auwal Tahir Maude called the collaboration “historic,” arguing it would allow Nigerian farmers to participate in the digital economy while setting a precedent for agricultural innovation across Africa.

Grey areas

• Despite the ambition, the partnership raises questions. Mr. Maude, who stands as AHC’s Country Executive, is also the CEO of Tingo Nigeria, a company linked to Tingo Group.
• In December 2023, the U.S. Securities and Exchange Commission (SEC) charged Tingo Group, Agri-Fintech Holdings, Tingo International Holdings, and their founder, Dozy Mmobuosi, with inflating financial results to mislead investors.
• A U.S. federal court later fined Mmobuosi more than $250 million and barred him from holding directorships in public companies.

Unanswered questions

• Tingo has previously partnered with AFAN on agricultural technology initiatives, making it unclear whether this new collaboration represents a fresh start or a continuation under a different structure.
• There are also questions about whether African Holdings is affiliated with Tingo Group, regulatory approvals for tokenizing agricultural assets, and what safeguards are in place to protect farmers’ investments.
• The company has not clarified whether it operates independently from the entities involved in the SEC fraud case.
• Mariblock contacted Mr. Maude to clarify these issues but did not receive a response before publication.

Zoom out

• Nigeria’s initiative joins other continental blockchain agriculture projects. Ghana has implemented several blockchain cocoa traceability projects, including Koa’s system that ensures farmer payments.
• Nedbank, one of South Africa’s major financial institutions, announced plans in April to roll out smart contract applications to showcase its blockchain capabilities and explore uses in agriculture.