Agriculture Financing In Nigeria: Problems And Prospect

Project and Seminar Material for Agricultural Engineering AE

Agriculture Financing In Nigeria: Problems And Prospect


This project seeks to bring together existing state of knowledge and existing state of practice in agriculture sector new techniques have to be proven before they are adopted in the general practice.

  • Chapter one of this project will deal with the statement of problems rationale of study significance of study and definition of terms.
  • Chapter two will examine in details the related literature to the project.
  • Chapter three will deal with statement of hypotheses methodology of study and sources of data.
  • Chapter four will deal with presentation of data and analysis of data and also the discussion of results.
  • Chapter five will deal with summary conclusion and suggestion
  • Finally I hope that this project will be of benefit to agriculture sector the student of training and finance and other researchers in related topics.

Table Of Contents

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Abstract
  • Acknowledgement
  • Table of content

Chapter one


  • 1.1 Statement of problem
  • 1.2 Rationale of study
  • 1.3 Significance of study
  • 1.4 Definition of terms

Chapter Two

Literature Review

  • 2.1 An overview of the agriculture in Nigeria
  • 2.2 The role of the agricultural section in the Nigeria economy
  • 2.3 Problem of agriculture finance
  • 2.4 Specialized financial institution in agricultural
  • 2.5 Prospect of institution financing agriculture

Chapter Three

Statement of Hypotheses Methodology of Study Source of Data

  • 3.1 Statement of hypotheses
  • 3.2 Methodology of study
  • 3.3 Source of data

Chapter Four

Data Presentation and Analysis of Data

  • 4.1 Presentation of data
  • 4.2 Analysis of data

Chapter Five

Summary Conclusion and Suggestion

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Suggestion
  • Bibliography 3

Chapter One


1.1. Statement Of Problem.

The problem of low productivity and lack of improvement in agriculture has been traced to various causal factors.

One of such course is the lack of adequate finance to the agriculture’s. They complain that they do not have enough fund to carry on with their activities. We want to investigate the reasons why these formers find it difficult to raise enough money to carry out their important work.

I will also investigate the ways of eliminating these problems. Several measures have been taken by the government to encourage agriculture financing in the country but they houses not yielded the necessary effect for they are established.

1.2. Rationale Of Study

The study seeks to examine the various roles of financing agriculture Nigeria.

Specifically. The reasons for the study are:

Managers of agriculture business will be able and also have a wide range of solution to deal with agricultural financing in rural development.

Agriculture is very important in man’s every day life particularly in providing food for individual providing revenue for formers and the agriculture sector generate a sizable point of the national income and can also contribute its quota to the success of the student in our institutions.

1.3. Significance Of Study

Findings from an authentic study of this nature are expected to contribute immensely to our educational and agricultural policies and prospect in West African.

It would also assist formers and business men who are opportune to read this research work in their business activities. That is it would bring about increase in exportation of farm product hereby make life conformable in Nigeria.

1.4. Definition Of Terms

This research topic has some very key words which call for treatment before anything else.


This is a sector of economic achinilyes which provide human with some of their needs. Or the science and practice of captivating the land and keeping animal for man’s use.


Genuine know to be true


The management of money


Way of solving problem


Selling goods to another country

Chapter Five

Summary Conclusion And Suggestion

5.1 Summary

Let me stress once more that the important of the agriculture section to our economic independence can not be over-emphasized. Agriculture even right how are the main sources of employment for the country reaming population.

A well developed agricultural sector will produce not only items sufficient to feed the nation but also much needed raw materials by our industries .

Modernization of agriculture sector to ensure effective development will contemn to require native infusion of various. Agricultural input biological mechanical and managerial. These requirement will involve colossal expenditure which government alone can afford especially at this time. There is a saying that timely purchase of form input in performs forming limitless promoting holds the key to successful agriculture enterprises while availability of credit holds the key to acquisition promoting agricultural development.

From the foregoing we have sent that sent that some progress has been made to found and revamp or increase agriculture by various administration and financial institution. But it has been slow and inadequate to the needs of agriculture in the country

It is my view that priority effort must be made to stem the wide of the deteriorating agriculture production in the work of dwindling foreign exchange research and result biting economic emergency measure.

5.2 Conclusion

Having looked at the prospect of institutional financing for agriculture I would like to request that the authorities commend stop up the present level of financial support for our agricultural sector.

5.3 Suggestions

To this and therefore I venture to make the following suggestion for reflection our banks should more than ever before be prepared to allocated much higher proportion of their latal loan to agriculture sector in line with priority according to the sector by the government

Toward this end bank should endeavor to improve on their compliance with Mongol policy guidelines. If the current non-chalant attitude banks to meet the prescribed minimum loan reqirement agriculture persists the authorities with home no action but to impose stringiest sanction on all affording banks.

Bank should assist the authorities to ensure the success of the agricultural credit guarantee scheme fund and other scheme.

The federal ministry of agriculture the state ministries of agriculture and the appropriate federal and state ministries information should continue the programme of enlightenment and public awareness to draw agencies namely Nigeria agricultural and co-operative bank, Ltd all commercial banks, the state co-operative banks the agricultural development authorities etc can provide for formers.

It is common knowledge that sources of agricultural credit are notoriously inadequate and since the commercial banks have limited loan portfolio for agricultural lending state government should establish guarantee scheme similar to the type sponsored by the central bank of Nigeria. Government policies should the directed towards increasing the production of formers through the introduction of appropriate production technology and inputs such as goods water livestock feeds agro- chemicals and fertilizer and the right quantity and time. This can be attained by creation of needs infrastructure theory maestro that could improve market access for formers and ensure competitive prices to both their product and the inputs they use in production. This will improve profitability of agriculture as a business and enhance its polices such that demotes production does not conflate with supply of inputs should coincide with their needs. The increase potential which exists for co-operative in may feeds is widely acknowledged. Therefore the government should insect funds into co-operation banking so that credit activities can be geared towards agricultural financing.

The implementation of agriculture credits guarantee scheme which is the main source of commercial banks loan to formers should be pursued gorgeously to benefit more formers. The central bank of Nigeria should boost the normal of the commercial banks by reimbursing the banks their portion of the loan default agreement on time.

The bank should seize the opportunity of their presence in the area to identify genuine formers who will not divert the loan to etherizes. This could be alone in consonance with local leader’s officials of local government council and state ministry of agriculture.

I have no doubt that given efficient management all the suggestion will go a long way in dusting agricultural financing and hence agricultural cultural production.

Finally to improve the level of agriculture in Nigeria I hereby suggest that the future scholars should undertake this topic “the role of the Nigeria agricultural and co-operative bank in agricultural and co-operative banks in Agriculture financing.

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