ABSTRACTInadequate support in terms of credit facilities from government and financial institution has been identified as one of the major problem affecting farming operation particularly that of the small scale farmers in Nigeria. This study analyzed the impact of credit facilities to the operation of small scale farms in Nigeria using BENDE Local Government as a case study. Questionnaires were used to source the data used in carrying out this research. The research design employed for this study was a descriptive survey design, in order to achieve an accurate representation of the entire population. The study makes use of simple random sampling technique as the method of data analysis. However, one strong outcome of this study is that the poor state of credit facilities to small scale farmers in Nigeria has drastically affected farming operation, thus, reduction in agricultural output, leading to importation of Agricultural product. Credit facilities therefore plays a crucial role in the operation of small scale farming, this ensures the derived output which sustain the growth and development of the economy. TABLE OF CONTENTTitle PageiApproval PageiiDedicationiiiAcknowledgement ivAbstractviTable of ContentviiChapter One1.0Introduction 11.1Background of the Study11.2Statement of Problem31.3Objective of the Study41.4Statement of Hypothesis41.5Scope of the Study 51.6Justification of Study51.7Organisation of Study6Chapter TwoLiterature Review2.0Introduction 72.1Conceptual Issues92.2Overview of Credit Scheme to Farmers in Nigeria92.3Empirical Literature Review442.4Conclusion  45Chapter Three3.0Research Methodology473.1Introduction 473.2Research Design473.3The Research Population 483.4Sampling Frame and Sampling Unit483.5Sampling Method493.6Sample Size 493.7Method of Data Collection493.8Method of Data Analysis 49 Chapter FourResults and Discussion of Findings4.0Introduction 514.1Demographic Data 514.2Presentation of Selected Variable Based on Descriptive Statistics554.3Research hypothesis61Chapter FiveSummary, Conclusion and Recommendation5.1Summary645.2Conclusion655.3Recommendation65Bibliography68Journals71Questionnaire73 List of TablesTable 4 1:   Distribution of respondents by sexTable 4:2:Distribution of respondents by AgeTable 4:3:Distribution of respondents by marital statusTable 4.4:Distribution of respondents by ReligionTable 4:5:Distribution of respondent by Educational Qualification.Table 4.2.6:   Respondent cost on farm operation per year.Table 4.2.7:   Respondent income received externally to finance farm operation yearlyTable 4.2.8:   Respondent duration to access credit facilities needed to finance farm operation.Table 4.2.9:   Respondent Assessment of the state of credit facilities of small scale farmersTable 4.2.10: Respondent percentage of interest rate favourable to themTable 4.2.11: Respondent benefit from subsidies within the past yearsTable 4.3.1:   Response on research questionCHAPTER ONE6  INTRODUCTION1.1BACKGROUND OF THE STUDY Agriculture according to Longman Dictionary of Contemporary English New Edition is the science or practice of farming.Agriculture has a key role to play in the economic development of Nigeria, it is a leading sector in any meaningful economic development being carried out by any nation such as ours. Agriculture as its output tends to contribute significantly in the areas like employment opportunities, provision of food to the increasing population, contribution to GDP where the country is able to earn foreign exchange, also the provision of raw materials to our local industries particularly the agroallied industries for further production.An overview of Nigerian agricultural sector agricultural sector was the most important to the economy. In fact, the generationof this period can still remember those days when the pyramid of groundnut was the pride to the northern region and cocoa production areas of the west also boosted the foreign earning from cocoa exports. Today, the nation is still not independent in terms of agriculture providing food for its people to feed on.Credit is an important instrument for improving the welfare of the poor directly through consumption smoothening that reduces their vulnerability to shortterm income. It also enhances productive capacity of the poor through financing investment in their human and physical capital. The demand for credit for productive investments usually comes from the poor who are less riskaverse and it enables them to overcome liquidity constraints, making it possible to undertake investments that can boost production, employment and income. Financial intermediaries have not been able to accommodate smallscale farmers because it is risky and a different task associated with high transaction costs. Lack of information prevented large formal leaders who had capacity to serve the smallscale farmers and the poor from doing so. It is undisputable that smallscale farmers have always had a problem of access to credit facilities. To improve the access, improvements need to be made in the provision of financial services. In order to implore financial services, leaders need to consider the preferences and socioeconomic condition of clients. This contributes to both regulatory process as well as product development thus, an understanding of characteristics influencingfarmers decision to use agricultural could enhance welfare of the poor or those excluded from access to credit facilities.The poor performance of Nigerian agriculture and its attendant effect prompted government to seek and reverse the situation which was demonstrated in the policies and practice such as National Accelerated food production programme NAFPP, Operation Feed the Nation OFN, Green Revolution Programme GRP, Accelerated Crops Production Programme Scheme ACPS and international organisation like the World Bank. This includes some of the steps taken by the Federal Government of Nigeria to assist farmers to boost agricultural production in the country.1.2STATEMENT OF THE PROBLEM In spite of the remarkable contribution of the agricultural sector to the GDP, findings over the years here shown that government subsidies directed at the agricultural sector have drastically reduced and as such the dwindling fall in agricultural productivities and by extension agricultural development. In Nigeria,as in most developing countries,regardedasthelack major constraint farmers face when they try to improve economic activities and/or living conditions Britain,004. Even1986:when Bis available, access to credit facilities is difficult to access by farmers in the rural area despite the fact that it is an essential input in production FARM, 2006. This could be adduced to lack of information and collateral securities among farmers.Furthermore, the behaviours of financial institutions set up to finance agriculture revealed that funds necessary to induce agricultural productivity has not been geared toward agricultural sector. Commercial banks in particular are skeptical towards financing agricultural activities and in most cases do not offer friendly interest rate to encourage farmers to acquire loans. This research study shall examine the analysis of credit facilities to small scale farmers in Nigeria.1.3OBJECTIVES OF THE STUDY The specific objectives of the analysis of credit facilities to small scale farmers are:i.To analyze the impact of credit facilities to the operation of small scale farmers in Nigeria. ii.To identify and analyze the socioeconomic characteristics that may influence farmersdecision about whether or not to use credit. iii.To examine the probability that nonborrowers can borrow given that socioeconomic characteristics are increased.  1.4STATEMENT OF HYPOTHESIS Given the nature of this research work there is need to formulate a reasonable hypothesis:H0: credit facilities are not significant in the operation of small scale farmers in Nigeria.H1:  Credit  facilities are  significant  in  the  operation  of  small  scale  farmers  in Nigeria.1.5SCOPE OF THE STUDY The scope of this study shall cover the role of credit facilities to small scale farmers in Bende L.G.A in Abia state. This study shall encompass the nature, the structure of availability of each facility as well as measurement of relative accessibility to small scale farmers in Nigeria.