The Role of Commercial Banks in Agricultural Finance in Benue State

Agricultural financing remains a critical yet underserved sector in Nigeria's North Central geopolitical zone, where farming constitutes the primary livelihood for the majority of rural households. This study investigates the role of commercial banks in providing agricultural finance in Benue State, widely regarded as Nigeria's food basket due to its agrarian economy. The study adopts a descriptive research design, and data were collected from 180 farmers and 20 bank branch managers across Makurdi, Gboko, and Otukpo local government areas using structured questionnaires and interview schedules. Findings are analysed using descriptive statistics, regression analysis, and thematic coding for qualitative responses. The research is framed within the agricultural credit guarantee scheme framework and evaluated against recent Central Bank of Nigeria directives on agricultural lending. A review of the current literature reveals persistent structural barriers including lack of collateral, poor rural branch penetration, and limited awareness of agricultural loan products among eligible farmers. The study further explores whether the Anchor Borrowers Programme and related interventions have effectively bridged the financing gap in the state. The expected outcomes aim to contribute practical recommendations for improving bank-farmer engagement, refining credit delivery models, and expanding the scope of agribusiness financing in the North Central zone. Outcomes will be particularly useful to Benue State government, financial institutions, and rural development agencies. Keywords: agricultural finance, commercial banks, Benue State, rural credit, Anchor Borrowers Programme