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This paper investigated the constraints and prospects of small and medium agricultural enterprises in Nigeria. Getting the agricultural system back to its best will speed up the reduction of poverty and rapidly improve the economy. Policies and programmes that should be put in place to tackle this problems must include provision of agricultural technology, Scaling up through value-added processing, Ensuring farmers’ access to inputs and to markets for outputs, Provision agricultural credit and attracting youth into farming. Since most of the agricultural activities are carried out in the rural areas, the government must turn to the rural area and invest a lot in the infrastructure and development of the rural areas as this will greatly help in combating the constraints.
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