Brief Introduction

Farmers need productive resources and these resources are acquired with owned or borrowed funds. Agriculture is very important to the economy of most developing countries of the world and because of this, a supply of adequate farmer finance is essential for natural well-being.

Since agriculture is the backbone of the Nigerian economy providing employment to about 70% of its population yet this important sector has suffered neglect since the oil boom days. Agriculture has totally declined since the early 1970s Nigeria export crops such as groundnut, palm oil.

Agriculture recorded a growth rate in 1975 of about 2.6% while the population grew at about 70% compared to 57-7% in the 1993 economic growth summit (1995).

The small scale farmers according to the national agricultural policy document for Nigeria (N.A.P.O.N) constitute over 90% of the food and fiber requirement of Nigeria, on the other hand, large scale farmers produce has than 1% of farm output in Nigeria but they tend to have greater access to farmer inputs including farm credit or loan.