The following factors contribute to the problems of agricultural development in Nigeria:
(a) Finance (i) Peasant farmers have no access to credit facilities or loan to increase their production. (ii) Commercia banks will not give credit/loan to farmers because they do not have collateral security. (iii) Farmers need adequate finance and credit to embark on large scale farming. (iv) Banks charge high interest rate. (v) Some farmers who get loan divert the money for other purposes.
(b) Farm inputs: (1) Majority of the farm inputs are not produced in Nigeria, but have to be imported. (ii) Farm inputs are inadequate or are in short supply. (iii) Most of the farm inputs are of inferior quality. (iv) Farm inputs even when they are available are not supplied at the right time. (v) Most farmers do not know how to use or apply some of the inputs.
(c) Transportation: (i) Due to bad roads, much of the produce spoilt and wasted, especially perishable ones. (ii) Some existing farms are located in inaccessible areas where roads are completely absent. (iii) Cost of transportation is very high. (iv) There are inadequate vehicles. (v) Poor transport system makes evacuation of farm produce to urban areas difficult.
(d) Storage and processing facilities: (i) Excess produce are wasted due to inadequate processing. (ii) Processing/storage facilities are very expensive. (iii) Inadequate storage facilities result in wastage and loss of some agricultural products. (iv) Improper storage reduces the quantity and quality of some of the products.(v) Lack of technical knowledge on operation of Processing and storage facilities