The Federal Government has intensified efforts to fast-track the implementation of a ¥15 billion (approximately $110 million) emergency loan from the Japan International Cooperation Agency (JICA) aimed at boosting food security across Nigeria.
This was confirmed in a statement released on Wednesday by the Federal Ministry of Finance and the Coordinating Ministry of the Economy following a high-level meeting between Finance Minister Wale Edun, Agriculture and Food Security Minister Abubakar Kyari, and senior JICA officials.
According to the statement, the loan facility is designed to strengthen Nigeria’s food production systems and build resilience amid ongoing global supply chain disruptions and domestic inflationary challenges.
“The JPY 15 billion facility (approximately $110 million) aims to support Nigeria’s food production systems and enhance resilience amid ongoing global supply challenges,” the ministry said.
With the rainy season underway, both ministers underscored the urgency of swiftly executing critical parts of the programme to provide timely support for farmers and rural communities.
“Both ministers emphasised the importance of swift, coordinated action to maximise impact for farmers and rural communities,” the statement added.
JICA reaffirmed its commitment to the project but requested formal clarification on proposed implementation changes.
“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 said.
This development follows President Bola Tinubu’s recent letter to the National Assembly seeking approval for a fresh external borrowing plan of $21.5 billion for 2025–2026, which includes the ¥15 billion JICA loan and a €51 million grant to support key development projects.
In his submission, President Tinubu explained that these funding facilities aim to generate employment, promote skills acquisition, foster entrepreneurship, reduce poverty, and enhance food security in Nigeria.
Data from the Debt Management Office indicates that Nigeria currently owes JICA $53.31 million as of December 2024, representing 0.88% of the country’s total bilateral debt and 0.12% of Nigeria’s total external debt. Approval of the new loan would increase Nigeria’s total debt to JICA to approximately $163.31 million.
