This study aims to review existing literature on agricultural financing in Nigeria and examine the different financing streams and their effects on smallholder farmers to recommend future research directions to improve the use of these funds for the sustainable development of smallholder farming in Nigeria. The examination of publications found using the following search technique served as the basis for this study: “agricultural,” “finance,” “funding,” or “credit,” “Africa,” and “Nigeria.” The application of contemporary farming technology, the degree of farm production, and the farmers' means of subsistence were the basis for designing a framework for assessing the demand for smallholder agricultural financing in Nigeria. In this study, the term “agricultural financing” concerns smallholder farmers' supply of loans for agricultural operations. Although funding for Nigeria's smallholder farming sector has been reported in several reviewed literature, it is unclear how these funds will affect farm productivity, the use of modern farming technology, and the farmers' standard of living. This study found that there are limited studies conducted on the assessment of financing in the agricultural sector especially in Nigeria.