Agriculture is a major source of livelihood and the main engine of economic growth in developing countries therefore the development of agricultural production is a public priority but most farmers are poor, hence there is gap in cash resources which blocks the adoption of new technologies innovation and credit is needed to fill the gap in Nigeria .Therefore, this study was carried out to assess anchor borrower s programme a central bank of Nigeria's intervention on rice production in Kwara State, Nigeria. Data for the data were sourced primarily from rice producers with the aid of a structured questionnaire. The findings reveal that 88.1% of the beneficiaries breached the agreement and refuse to deliver their produce to the Anchor Borrowers Programme due some reasons and their average estimated yield per hectare of paddy rice for all beneficiaries was 3.94 metric tons per hectare. Anchor Borrowers Programme had a positive effect on the income of the beneficiaries. Therefore the study recommended that the governments must intervene with subsidized lending (seeking no profit, amortizing high transaction costs, spreading the risk on a national basis),since most borrowers in rural areas are small farmers (i.e. poor), low cost credit responds to poverty alleviation considerations . Acknowledgement :