A Review of Bank Loans to Farmers: Implications for Agricultural Diversification in Nigeria

Abstract

Paper examined core issues inherent in agricultural loans to farmers using fundamental analysis method in its discussions and analysis. First, paper considered factors contributing to high risks in agricultural lending and how to manage them, second, factors of non-financial commercial bank lending were treated and third, financial factors considered by banks in making loans have been examined. In all, these factors and their implications to agricultural diversification of the Nigerian economy were discussed with a view to enhancing the agricultural productivity that would launch Nigeria into self-sufficiency in food production and exports in the 21st century.