The Federal Government has intensified discussions with the Japan International Cooperation Agency to fast-track the implementation of a ¥15bn (about $110m) emergency loan to improve food security across the country.
This was disclosed in a statement issued by the Federal Ministry of Finance and Coordinating Ministry of the Economy on Wednesday after a high-level meeting involving the Minister of Finance, Wale Edun; the Minister of Agriculture and Food Security, Senator Abubakar Kyari; and senior officials from JICA.
“The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Minister of Agriculture and Food Security, Senator Abubakar Kyari, today met with senior representatives of the Japan International Cooperation Agency to advance the implementation of the Food Security Emergency Loan Support Programme,” the ministry said in the statement.
According to the statement, the $110m facility is designed to support Nigeria’s food production systems and build resilience amid persistent global supply challenges and domestic inflationary pressures.
“The JPY 15bn facility (approximately $110m) aims to support Nigeria’s food production systems and enhance resilience amid ongoing global supply challenges,” the ministry added.
With the rainy season already underway, the ministers stressed the urgency of executing key components of the programme to ensure timely support for farmers and rural communities.
“Both ministers emphasised the importance of swift, coordinated action to maximise impact for farmers and rural communities,” it stated.
JICA, in response, reaffirmed its commitment to the programme but requested formal clarification on proposed implementation changes.
It was agreed that production activities would proceed immediately under the current framework, while other components such as aggregation and financing would be reviewed in line with the original loan terms.
“JICA welcomed the government’s commitment to delivery and requested formal clarification on proposed implementation adjustments.
“It was jointly agreed that core production activities would proceed immediately under the existing framework, while additional components, such as aggregation and financing, would be reviewed in line with the original loan agreement,” the statement read.
The development comes just days after President Bola Tinubu wrote to the National Assembly seeking approval for a fresh external borrowing plan of $21.5bn under the 2025–2026 borrowing framework.
In addition to the $21.5bn request, the President also seeks the legislature’s nod for the ¥15bn loan and a €51m grant to support key development initiatives.
According to the letter submitted to the National Assembly, Tinubu explained that the facilities are aimed at generating employment, promoting skill acquisition, fostering entrepreneurship, reducing poverty, and improving food security.
Meanwhile, data from the Debt Management Office shows that as of December 2024, Nigeria owes JICA $53.31m.
This represents 0.88 per cent of the country’s total bilateral debt and 0.12 per cent of Nigeria’s total external debt.
If the new food security loan is approved, Nigeria’s debt to JICA will rise to $163.31m.
