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In the past, the agricultural financing policy of the Nigerian government emphasized primary production without paying attention to the marketing of agricultural products. Consequently, the current emphasis by financial institutions on value chain financing has further compounded the problem of access to credit by smallholder farmers who account for over 90 per cent of agricultural production in Nigeria and do not have access to lucrative markets, nor adequate processing and storage facilities. More worrisome is how the right amount of investment can be acquired, particularly in a challenging environment where financial uncertainty causes a reduction in available resources along with increased fear and scrutiny of risk. From the perspective of other climes farmer linkages, improving access to improved seeds, fertilizers and production technology, enhancing farmer integration into the seed production, processing and marketing chain through farmer organization, training and out-grower contracts among others will boost agricultural value chain financing that will lead to sustainable development.

AGRICULTURAL VALUE CHAIN FINANCING: PANACEA FOR SUSTAINABLE DEVELOPMENT IN NIGERIA