FG Seeks ¥15bn Japanese Loan To Boost Food Security

The Federal Government has intensified its discussions with the Japan International Cooperation Agency (JICA) to accelerate the implementation of a ¥15bn (approximately $110m) emergency loan aimed at improving food security nationwide.

This development was revealed in a statement issued by the Federal Ministry of Finance and the Coordinating Ministry of the Economy on Wednesday, following 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.

The statement noted that the $110m facility is intended to strengthen Nigeria’s food production systems and increase resilience in the face of ongoing global supply disruptions and 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 added.

Given that the rainy season is already in progress, the ministers highlighted the need to implement essential components of the programme swiftly to ensure timely support for farmers and rural populations.

“Both ministers emphasised the importance of swift, coordinated action to maximise impact for farmers and rural communities,” it stated.

In response, JICA reaffirmed its commitment to the programme but requested formal clarification on proposed changes to the implementation approach.

“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.

This development comes shortly after President Bola Tinubu submitted a request to the National Assembly for approval of a new external borrowing plan totaling $21.5bn under the 2025–2026 borrowing framework.

In addition to the $21.5bn proposal, the President is also seeking the legislature’s approval for the ¥15bn emergency loan and a €51m grant to support key development initiatives.

According to Tinubu’s letter to the National Assembly, the proposed funding will focus on job creation, skill acquisition, entrepreneurship promotion, poverty reduction, and strengthening food security.

Meanwhile, figures from the Debt Management Office (DMO) show that as of December 2024, Nigeria owes JICA $53.31m. This represents 0.88% of the country’s total bilateral debt and 0.12% of its overall external debt.

If the new loan is approved, Nigeria’s debt to JICA will rise to $163.31m.