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

Abstract

ABSTRACT The paper highlights the problems and prospects of Agricultural Financing under the Economic Deregulation in Nigeria. The objective of this paper was to highlight the effort of the government in the development of the agricultural sector in Nigeria against the background of policy measures adopted under economic 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 “with or without” and “pre and post” commencement of economic deregulation. This result of the analyses revealed mixed performances 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 include; CBN monetary policies, Government Direct participation in Agricultural Financing Agricultural Credit Guarantee Scheme (ACGS), Rural Banking Programme (RBP), among others. It was therefore suggested that the interest rates on the borrowed capital for the sector be reduced, the existing financial policies and programmes be re-designed, reduction in the problem of inflationary pressures and the effect it creates on credit facility, loans to farmers should be timely, etc.