Microfinance banking: a strategy for small scale agricultural development in Nigeria

Abstract

This study was carried out to examine Microfinance as a strategy of small scale agricultural development. In the course of this study, the covenant university microfinance banks was examined including the farmers in the covenant university farm, to accomplish the purpose of the three stated objectives, research questions hypothesis and then the research problem in the study. The relationship and significance between the independent and dependent variables were established using the primary source of data, which is to determine the strength and direction of each variable, through the linear regression model. Using this, the significance, effect and relationship between this independent and dependent variables is identified. Therefore microfinance should be seen as an important factor in agricultural development. In line with the study, this recommendations were given: Micro finance institutions should generate policies and programmes for the agricultural sector, developed infrastructure and adequate social services must be constantly provided at the farmers groups, the government should focus on land reforms, the agricultural sector should be treated as a priority sector, in this farmers groups, there should be further divisions made in which small and marginal farmers will be in a special group for direct income support, trade policies should be designed for sustainable agricultural growth and protection of agricultural markets, the government should emphasize on agriculture oriented research and education, misuse and diversification of land for non-agricultural activities must be stopped, microfinance institution should ensure market access and sales for small scale farmers, microfinance institutions should aid macro-economic development of the Nation Nigeria.