An Examination of Factors Influencing Debt in Agricultural Finance: The Case of Smallholder Farmers in Nigeria and Future Directions

This review focused on evaluating the factors that influence debt in the agricultural financing of smallholder farmers in Nigeria. The research utilized secondary data sources, gathered from both print and online publications. A content analysis approach was employed to evaluate the selected literature for the study. The study identified various debt-influencing factors, including institutional and farm-level elements, government-induced factors, the age of beneficiaries, family dependency ratios, total farm costs, total farm income, the time lag between loan application and disbursement, loan duration, government policies, years of farming experience, loan amounts, alternative loan schemes, visits from credit officers, and the average interest rates paid by beneficiaries. These factors were recognized as significant influences on debt in the agricultural finance sector for smallholder farmers in Nigeria. It is recommended that government, financial institutions, and farmers should assist in mitigating the impact of these debt-influencing factors on agricultural finance.