PROBLEMS AND PROSPECTS OF AGRICULTURAL FINANCING IN NIGERIA UNDER THE ECONOMIC DERRGULATION

Abstract

This paper highlight the major problems and prospects of agricultural financing under economics deregulation in Nigeria. The objectives of this paper was to highlight the effort of government in the development of agricultural sector in Nigeria against the background of policy measures adopted under economics deregulation to promote its growth and proffer the way forward. The analytical method employed for this paper is largely that of comparative descriptive statistics. Perceived principally within the context of within and without and pre and post commencement of the economic deregulation. The results of the analyses revealed mixed performance of the sector during the deregulation period. Some of the government and Central Bank of Nigeria (CBN) policies on agricultural financing under the economic deregulation includes; CBN monetary policies; Government direct participation in agricultural financing, agricultural credit guarantee scheme (ACGS), Rural Banking programme (RBP), among other, it was therefore, suggested that the interest rate on borrowed capital for the sector be reduced, the existing financial policies and programme be re-designed, reduction in the problem of inflationary pressure and the effect it creates on credit facility, loans to farmers should be timely.