The Federal Government has entered advanced talks with the Japan International Cooperation Agency (JICA) to fast-track the implementation of a ¥15 billion (approximately $110 million) emergency loan aimed at boosting food security across Nigeria.

 

This development was announced in a statement issued on Wednesday by the Federal Ministry of Finance and the Coordinating Ministry of the Economy, following a high-level meeting involving the Minister of Finance, Wale Edun; Minister of Agriculture and Food Security, Senator Abubakar Kyari; and senior JICA officials.

 

“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 said.

 

The $110 million loan is designed to strengthen Nigeria’s food production systems and improve resilience in the face of global supply chain disruptions and domestic inflationary pressures.

 

With the 2025 rainy season already underway, the ministers highlighted the urgency of deploying the loan’s core components to ensure timely assistance for farmers and rural communities.

 

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

 

JICA, while reaffirming its support for the programme, requested formal clarification on proposed changes to the loan’s implementation strategy. It was agreed that core production activities would begin immediately under the current framework, while elements such as aggregation and financing would be reviewed in line with the original loan agreement.

 

This initiative is part of a broader external borrowing plan recently submitted to the National Assembly by President Bola Tinubu, who is seeking approval for $21.5 billion in new loans under the 2025–2026 borrowing framework. The President also included the ¥15 billion loan from JICA and a €51 million grant to support key developmental programmes.

 

In his request to lawmakers, President Tinubu stated that the funding would be used to generate employment, promote skills acquisition, foster entrepreneurship, reduce poverty, and enhance food security.

 

As of December 2024, data from the Debt Management Office (DMO) indicates that Nigeria owed JICA $53.31 million, representing 0.88% of its bilateral debt and 0.12% of total external debt. If the new loan is approved, Nigeria’s total debt to JICA will rise to $163.31 million.