FG Seeks ¥15bn Loan From Japan To Enhance Food Security

The federal government has intensified negotiations with the Japan International Cooperation Agency (JICA) to expedite the rollout of a ¥15 billion (approximately $110 million) emergency loan aimed at enhancing food security across Nigeria.

This was disclosed in a statement issued by the Federal Ministry of Finance and 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 ministry explained that the $110 million loan is aimed at reinforcing Nigeria’s food production infrastructure and mitigating challenges arising from global supply disruptions and inflationary pressures.

“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.

With the rainy season already in progress, the ministers underscored the urgency of launching key components of the programme to provide immediate support to farmers and rural communities.

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

In response, JICA reaffirmed its commitment to the programme but sought formal clarification from the government regarding proposed changes in implementation.

“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.

The renewed push for implementation comes shortly after President Bola Tinubu submitted a borrowing proposal to the National Assembly, seeking approval for a fresh $21.5 billion external loan under the 2025–2026 borrowing framework.

In addition to the $21.5 billion request, Tinubu also included the ¥15 billion loan from JICA and a €51 million grant to support priority development projects.

In his letter to lawmakers, President Tinubu stated the loans were intended to “generate employment, promote skill acquisition, foster entrepreneurship, reduce poverty, and improve food security.”

Meanwhile, figures from the Debt Management Office show that Nigeria’s outstanding debt to JICA stood at $53.31 million as of December 2024. This represents 0.88 percent of the country’s total bilateral debt and 0.12 percent of Nigeria’s total external debt.

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