The problems facing the agricultural sector in Nigeria and the prospect of Muzara’ah and supply chain model

The purpose of this paper is to develop a Muzara’ah–supply chain model for the purpose of enhancing agricultural financing and productivity in Nigeria.

In this paper, an expert survey approach was employed to validate the newly developed model.

A survey result on the model reveals that majority of the respondents agreed with the Muzara’ah–supply chain model and preferred it to the existing models.

The main limitation of this study is limited number of respondents.

With this newly developed financing model that is based risk sharing principles, the application of this model could help to reduce moral hazard and enhance agricultural productivity.

To the best knowledge of the researchers, such kind of study for financing agriculture does not exists in the case of Nigeria.