In the Nigerian Agricultural Transformation Agenda, Agro-dealers are strategically positioned as in-built mechanism through which farmers are to get requisite inputs to improve their production and productivity. However, the distribution network has been hampered by under-capitalization of actors in the distribution chain. Thus, the study seeks to; ascertain the extent to which agro-dealers are credit rationed, identify factors influencing credit rationing scenarios and suggest measures to combat challenges of credit rationing and stimulate demand for credit among agro-dealers. Credit rationing was modelled in the study using three categories of rationing namely, quantity, price and risk rationing. Primary data generated through structured questionnaire from 200 agro-dealers from Agrodealers' Trade Association from Four (4) states namely, Ondo, Ekiti, Osun and Oyo respectively. Seemingly Unrelated Regression model was used for the analysis. Credit rationing in terms of quantity is significantly depended on agro-dealers' income, value of asset, membership of trading association, borrowing status and level of education. Risk rationing is significantly dependent on borrowing status, value of assets and educational attainment, while price rationing is positively influenced by savings, borrowing status, membership of trade association and business experience. Agro-dealer need to strengthen their cooperation and develop their skills in the area of record keeping and maintain robust saving profile so as to enhance their credit rationing.
Keywords:Agro-dealers, Finance, Revenue and Credit Rationing