Prospects and challenges of agricultural financing in Nigeria: A review
1 Department of Agricultural Economics, Faculty of Agriculture, Delta State University, Abraka, Delta State, Nigeria.
2 Department of Agricultural Economics, Faculty of Agriculture, Dennis Osadebay University, Asaba, Delta State, Nigeria.
Review Article
GSC Advanced Research and Reviews, 2024, 18(03), 388–399.
Article DOI: 10.30574/gscarr.2024.18.3.0116
Publication history:
Received on 15 February 2024; revised on 27 March 2024; accepted on 29 March 2024
Abstract:
This paper examined the prospects and challenges of agricultural financing in Nigeria. It was observed that agricultural financing is all about providing services to the farmers who are traditionally not served by the conventional financial institutions. Agricultural financing holds a lot of prospects for Nigerians especially the poor as it will enable them develop their skills, engage in production and many others. Among the problems identified are access to banking services in rural communities, lack of acceptable collateral/ security, perceived high agricultural risk, lack of access to credit information, high cost of credit administration, access to market, infrastructural challenges and subsistence nature of farming. The various prospects highlighted include; economic empowerment of farmers, poverty reduction, gains from international trade, employment generations, rural development, skill development, new innovations, effective utilization of local resources and output expansion. Consequent upon the problems noted, the paper recommends that the supervisory authorities should enforce standards so as to address the issue of poor management of funds meant for credit disbursement.
Keywords:
Agricultural Financing; Prospects; Challenges; Financial Institutions; Nigeria
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