The statistical analysis of the role of microfinance banks in agricultural development was undertaken with the goal of establishing the role of microfinance banks. Loans to peasant farmers in exchange for crop production. Secondary data were collected using the ordinary least square method, and the durbin-watson t-statistics were used in the regression analysis. According to the findings, microfinance bank loans have a positive impact on agricultural development in Nigeria. Based on these findings, some recommendations were made, such as lowering interest rates to encourage farmers to borrow. The federal government should issue a directive through a microfinance bank to encourage farmers by providing incentives. This will automatically increase farmer efficiency, attracting more young people to the agricultural industry.



The project work is based on a statistical analysis of microfinance banks’ roles in agricultural development in Nasarawa state.

A study was conducted on three selected microfinance banks. Microfinance banks have played an important role in financing various agricultural development programs. According to Schreiver and Columbet (2001), microfinance is a development tool used to provide access to financial services for the economically active poor.


Nasarawa state is one of the seven states that comprise the north central geopolitical zone and the north central part of Nigeria. It shares an inter-state boundary with Kaduna state to the north, the federal capital territory of Abuja to the west, Kogi and Benue state to the south, Taraba and plateau state to the east, and its capital Lafia to the east.

Nasarawa state was originally a part of the northern region in the 1954 three-region structure. General Yakubu Gowon’s military government created 12 federal states in 1967, and it became part of the Benue Plateau State. General Muritala Muhammed’s 1976 military government created 19 states out of the existing 12 federal states, with Nasarawa state becoming a component of plateau state in 1996.

General Sani Abacha’s military government divided plateau state into the current plateau state and Nasarawa state.

Lafia (Capital City), Akwanga, Dorna, Karu, Keffi, Nasarawa, Nasarawa-Eggonand waund a land mass, location, and population.

Nasarawa state has a population of 1,863,275 (2006 census figures) and a population density of 65 people per square kilometer, accounting for 1.3% of Nigeria’s total population. The Magili people were among the first inhabitants and settlers in Nasarawa State. The state is named after Nasarawa, one of its main administrative structures:

(Administrative Military) From October 1996 to August 1998. Baba Marde Administrator (military administrator) August 1998-May 1999 AbdullahiAdamu (Governor Civilianmay (People Democratic Party) 29 May 1999-May 2007 AliyuDoma (Governor-civilian (People Democratic Party) 29 May 1999-May 2007

Party) from May 2007 to May 2011 Umar TankoAlmakura (may 2011-present) governor-civilian (congress for progressive change).

Agriculture is very important and the main occupation of the people of the animal cassava, yam, rice, corn, genie corn, beans, soya beans, and millet are the major crops grown in Nasarawa state. State coals, loonier, zinc, copper, columbite barite, and aquamarine are among the minerals found in the state.

Nasarawa state has one federal university, Nasarawa state University Keffi, and a number of polytechnics, including the College of Agriculture-Lafia and the Federal Polytechnic Lafia.

Nasarawa state’s tourism and recreation features include a farm, Ruwa Waterfall, Eggon Hills, and Caves.

PapeRuwa Lake, Kenna salt village, Doma Dam area Rock, and Alain warm springs are all worth a visit.

Ames Welmers was born in 1934 and died in 1971.


Microfinance begins with a single man and a single village. Gramme Bank was the first microfinance bank, founded in by Muhammed Yunusa, a native of Bangladesh, in a time when business owners were forced to repay a large portion of their profits to loan issuers (1976) Yunusa made his first microfinance loan from his personal account to a group of women in a Bangladeshi village, and the concept of microfinance grew from there. His intentions were not to gorge the borrowers, but rather to provide them with reasonable loans on terms that would not financially cripple them, but instead foster growth. Microfinance loans are intended to provide financing.

to the world’s poorest regions, including Sub-Saharan Africa and the democratic republic of Georgia, where pockets of the population would otherwise have no access to any type of banking institution. In addition to small loans, individuals receive additional support, such as education and training for personal development, as well as savings and insurance products, with the goal of breaking the cycle of property in a region. According to Opportunity International, a US-based non-profit organization that works with microfinance lenders, loans for women living in poverty are women. In a developing country, a woman is less likely to receive formal education, business training, or a prominent role in society, and without adequate financial support, she may never overcome these obstacles.

Reference: Microfinance Economics

and Jonathan Morduch for a long time.

According to T.Steil Newman (1823), agriculture is a thing of law. As such, any agricultural operation or revolution that fails to include rural farmers is doomed to fail. If microfinance banks all over the world are to direct their services and credits to the business sectors and the so-called rich individuals in the cities while the rural duelers (farmers) are left out, we must keep in mind that we are not hel A well-organized and productive agriculture sector is critical for achieving sustainable economic and social development. The nation deserves agricultural contributed about 55.2% to Nigeria’s Growth Domestic Product (G.D.P) in 1960, but this contribution declined to about 30.3% in 1970. This sharp decline has been attributed to a number of factors including the discovery of petroleum, the civil war, and the Saharan drought. Despite these difficulties, agriculture still provides the majority of food consumed in this country, raw materials for many Nigerians, and foreign exchange.

One solution to this problem is to make loans available to them in order for them to purchase many of the inputs that are now available as well as to expand their scale of operation.

Lavelack.J. Thomason Renters, Agricultural Vol. 39 No. 499-239-243, Thomason Renters, 2009.

Agricultural loan is the ability to borrow agricultural capital in any form for the purpose of expending agricultural production or other agricultural activities.


Despite the fact that microfinance banks loan to farmers and the quantity production of selected crops, agricultural activities carried out at various levels and fields are still facing a lot of problems, these problems affect the production of foods, poultry, and other agricultural activities, there are a number of constraints, facing agricultural development in Nasarawa, knowing all of these problems above, the researcher intends to know if the loan given to farmers ar


The goal of this researcher’s work is to determine whether or not the loan given to farmers leads to an increase in agricultural development in order to reduce the rate of imported products, as well as whether or not the number of people who will receive loans in the near future will increase. With the following goals in mind:

To compare the amount of output of the chosen crops.

Determine the trend of loan allocation by microfinance banks.

The number of farmers expected to benefit from the loan is estimated.

to forecast the amount allocated to different crops

To determine whether or not it is significant.


Both the microfinance banks and the farmers will benefit from the research because they will be able to identify the banks’ faults and the point of correction. It is also important to the society for loan implementation and planning purposes. In this case, the society or community will be able to determine the responses of other farmers to this economic contribution or in controls by establishing more microfinance banks. In terms of agricultural activities, the state has complete control over their activities and policymaking.


From 2000 to 2015, this study focused on three selected microfinance banks in Nasarawa State.


The following is set up to guide the researcher toward the successful completion of this project work.


In Nigeria, microfinance bank loans have had no significant impact on agricultural development.


Because of this limitation, the data used in the research work is limited to records of loans awarded by microfinance banks.

There is a scarcity of microfinance banks in the study area. Other study limitations are south of inches run into the cause of gathering the data and materials, such as financial and time constraints.


Loans: A loan is a sum of money given to a person by a bank with the intention of repaying it at a later date with interest on the capital given.

Outside clients are liable for the bank’s assets.

Assets are the resources of banks; they can be fixed or current assets.

A bank is a financial institution that invests money deposited by customers.

A population is a group of entities from which decisions and conclusions are to be drawn.

A sample is a subset of a population that is studied in order to draw conclusions about the entire population.


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