Possible strategies for improving agricultural credit in Nigeria are formulated. Past financial institutions in different parts of the country are examined and the causes of their failure are discussed. These institutions had problems stemming from non-repayment of loans, cumbersome and time-consuming procedures and bribery and corruption. Analysis of the data indicates that present credit operations by the financial institutions are far better than those of institutions prior to 1970s. Possible strategies for greater efficiency include decentralization and channelling of loans through cooperative societies. Others include the need to promote savings by small holders, involvement of farming communities in the operation of the bank, and establishment of research and experimental units for banks and various institutions. The adoption of the strategies suggested would aid the improvement of financial institutions.