The agricultural sector in Nigeria has been plagued with challenges. One identified constraint
is the limited knowledge on factors influencing efficiency of small farms by policy makers.
In this context, we aggregate the determinants of technical efficiency into institutional and
geographic factors. This paper adopts the Bayesian method to measures the impacts of these
components on technical efficiency. Empirical measurement is demonstrated using
2010/2011 Household Survey dataset for Nigeria. The results show that the average crop
output in value of per hectare is approximately N= 143,000 ($878.65). The sizes of farm were
small with majority smaller than 2 hectares; which are predominantly cultivated using family
labour. Further we found that all production variables considered were significant at 1 percent
while farms were inefficient up to 16 percent on average. We find that selected institution
variables (land ownership) and Geographic location variables significantly influenced the
level of efficiency.