The Federal Government of Nigeria is advancing talks with the Japan International Cooperation Agency (JICA) to finalize a ¥15 billion (approximately $110 million) emergency loan facility aimed at bolstering national food security.
This development was disclosed in a statement released Wednesday by the Federal Ministry of Finance and the Coordinating Ministry of the Economy, following a strategic meeting involving the Minister of Finance, Wale Edun, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, and top JICA officials.
“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Honourable Minister of Agriculture and Food Security, Senator Abubakar Kyari, today met with senior representatives of the Japan International Cooperation Agency (JICA) to advance the implementation of the Food Security Emergency Loan Support Programme,” the statement read.
Loan to Strengthen Food Systems and Resilience
The emergency loan is part of efforts to improve food production infrastructure and enhance agricultural resilience amid global supply disruptions and inflationary pressures.
“The ¥15 billion facility is designed to strengthen Nigeria’s food production systems and improve resilience in the face of ongoing global supply chain challenges,” the ministry added.
With the 2025 rainy season already underway, both ministers stressed the urgency of rapid implementation to ensure timely support for farmers and rural communities.
JICA Requests Clarification on Project Adjustments
While reiterating its commitment to the initiative, JICA has requested formal clarification on proposed modifications to the loan implementation plan.
Both sides agreed that core production activities would move forward immediately, while components such as aggregation and financing would be reviewed in line with the terms of the original agreement.
“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, while other elements would undergo further review,” the ministry confirmed.
Part of Broader National Development Strategy
The food security programme forms a key pillar in Nigeria’s broader development strategy, which aims to tackle hunger, raise agricultural productivity, and stabilize the economy through international cooperation.
Context: Nigeria Eyes $21.5 Billion in New External Loans
President Bola Tinubu recently submitted a proposal to the National Assembly seeking approval for a $21.5 billion borrowing plan under the 2025–2026 external loan programme.
Among the components is the ¥15 billion JICA loan and an additional €51 million grant, earmarked to support job creation, skills development, entrepreneurship, and food security initiatives.
According to the Debt Management Office (DMO), Nigeria’s current debt to JICA stands at $53.31 million—representing 0.88% of its bilateral debt and 0.12% of total external obligations.
If the new facility is approved, Nigeria’s total debt to Japan would rise to $163.31 million.
Key Takeaways:
- FG and JICA are finalizing a $110 million loan to improve food production and resilience.
- Core agricultural components will commence immediately; financing elements are under review.
- The facility is part of a broader $21.5 billion external borrowing plan awaiting legislative approval.
- Nigeria’s debt to Japan could rise significantly if the loan is granted.
The government hopes this partnership will be instrumental in combating food insecurity and supporting economic recovery in the years ahead.
