In a renewed effort to address food insecurity and bolster agricultural resilience, the Federal Government of Nigeria has intensified collaboration with the Japan International Cooperation Agency (JICA) to operationalize a ¥15 billion (approximately $110 million) emergency loan facility. This development was announced by the Federal Ministry of Finance and Coordinating Ministry of the Economy on Wednesday, following a high-level strategic meeting between key government officials and JICA representatives.
According to the ministry, “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.”
Focused on Agricultural Resilience
This emergency loan is designed to boost Nigeria’s food production systems and improve resilience in response to ongoing disruptions in global supply chains and persistent inflationary pressures affecting agriculture.
“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 stated.
With the 2025 rainy season already in progress, the ministers emphasized the importance of rapid implementation to ensure critical support reaches farming communities in time.
“Both Ministers emphasised the importance of swift, coordinated action to maximise impact for farmers and rural communities,” the statement read.
Clarification Requested by JICA
JICA reiterated its support for the loan initiative but called for formal clarification on certain aspects of the programme’s implementation. A consensus was reached during the meeting to proceed immediately with core production activities, while other segments—such as aggregation and financing—would undergo further review within the context 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 under the existing framework, while additional components, such as aggregation and financing, would be reviewed in line with the original loan agreement,” the ministry added.
This programme aligns with Nigeria’s broader objectives to combat food insecurity, raise agricultural productivity, and stabilize the economy through sustainable international partnerships.
Additional Context
- President Bola Tinubu has submitted a new external borrowing request to the Senate, seeking approval for a $21.5 billion loan plan under the 2025–2026 borrowing framework.
- The proposal also includes a separate ¥15 billion (approximately $110 million) loan from Japan and a €51 million grant, intended to support employment, skill development, entrepreneurship, poverty reduction, and food security.
- The request arrives amid rising public concern over Nigeria’s expanding debt burden.
- As of December 2024, data from the Debt Management Office (DMO) indicated that Nigeria owed JICA $53.31 million, representing 0.88% of its total bilateral debt and 0.12% of total external debt.
- If this new facility is approved, Nigeria’s total debt to Japan could rise to approximately $163.31 million.
