The Federal Government is accelerating negotiations with the Japan International Cooperation Agency (JICA) to expedite the implementation of a ¥15 billion (approximately $110 million) emergency loan aimed at bolstering food security across Nigeria.
This was revealed in a statement issued on Wednesday by the Federal Ministry of Finance and the Coordinating Ministry of the Economy following a high-level meeting in Abuja. The meeting involved the Minister of Finance and Coordinating Minister of the Economy, 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 statement read.
The facility, valued at approximately $110 million, is designed to strengthen Nigeria’s food production systems and enhance resilience amid ongoing global supply chain disruptions and rising domestic inflation.
“The JPY 15bn facility (approximately $110m) aims to support Nigeria’s food production systems and enhance resilience amid ongoing global supply challenges,” the ministry reiterated.
With the rainy season already underway, both ministers highlighted the urgency of fast-tracking the loan’s implementation to ensure timely interventions for farmers and vulnerable rural communities.
“Both ministers emphasised the importance of swift, coordinated action to maximise impact for farmers and rural communities,” the statement noted.
JICA, while reaffirming its support for the programme, requested formal clarification on proposed changes to the implementation strategy. Following deliberations, it was agreed that core production activities would proceed immediately under the current framework. Other components, such as aggregation and financing, will be reviewed to align with the original terms of the loan.
“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 added.
The development comes amid broader efforts by the Federal Government to secure external funding for national development. Just days earlier, President Bola Tinubu submitted a new borrowing request to the National Assembly, seeking approval for a $21.5 billion external loan under the 2025–2026 borrowing plan.
In the same proposal, the President also requested legislative approval for the ¥15 billion JICA loan and a €51 million grant to support priority initiatives aimed at job creation, skill acquisition, entrepreneurship, poverty reduction, and food security enhancement.
Meanwhile, data from the Debt Management Office shows that Nigeria’s existing debt to JICA stood at $53.31 million as of December 2024. This accounts for 0.88% of the country’s bilateral debt and 0.12% of total external debt. Approval of the new food security loan would raise Nigeria’s total debt to JICA to $163.31 million.
