A value chain is a connected string of companies, groups and other players working together to satisfy market demands for a particular product or group of products. In recent times, Financial Institutions are more interested in financing various actors along the value chain, with emphasis on cash flow rather than any form of collateral. Value chain approach to agribusiness financing considers the market first and assesses the level of development of the value chain. However, in Nigeria as in most other SubSaharan African countries where agriculture is still characterized by small scale producers and disjointed agricultural value chains, a lot still needs to be done to be able to achieve success with the concept of value chain financing in the bid to transform the agricultural sector and accelerate economic development