Direct Small Holder Agricultural Loan portfolio Management is a major task that must be done if the existing long standing creditable Small Holder clients of the bank are to be retained and not lost to Commercial and Merchant banks. This involves the use of heuristic to the most complicated techniques for decision making. This should be done in such away that funds obtained from both federal and capital markets are not totally put into risky and hopeless transactions that would lead to the collapse of the bank. On the other hand, profitability must be ensured through making loan able funds available and at the same lime maintaining adequate liquidity, safely, survival and growth of the bank. The study reveals that the financial requirements of the Lew Small Scale farmers nationwide who applied for the loan could not be met despite the fact that they form the bulk of the farming population in the country. This is a s a result of inadequacy of funds. Also less than half of the amount approved and disbursed were recovered. This is as a result of poor managment of the portfolios. The analysis done and the solution proffered in this project work will be of immense contribution to knowledge when the issue of Agricultural Loan portfolio management relating to Nigerian Agricultural and Cooperative Bank Ltd is concerned. In view of the findings from this research work, some suggestions and proposals have been made to the Government and management of the bank which if properly and promptly implemented will help sustain the survival and development of the bank.