The Federal Government of Nigeria is pressing ahead with the implementation of a ¥15 billion (approximately $110 million) emergency loan facility from the Japan International Cooperation Agency (JICA), aimed at bolstering the nation’s food security. This development follows a crucial meeting on Wednesday involving Mr. Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, and Senator Abubakar Kyari, Minister of Agriculture and Food Security, with senior JICA officials.
The high-level discussion focused on accelerating the “Food Security Emergency Loan Support Programme,” a vital initiative designed to enhance Nigeria’s food production systems and build resilience amidst persistent global supply chain disruptions and inflationary pressures.
With the 2025 rainy season already commenced, both ministers underscored the urgency of deploying core components of the program to ensure timely support reaches farmers and rural communities. “Both Ministers emphasised the importance of swift, coordinated action to maximise impact for farmers and rural communities,” a statement from the Federal Ministry of Finance affirmed.
JICA, while reaffirming its commitment to the partnership, requested formal clarification on certain proposed implementation adjustments. It was mutually agreed that critical production activities would proceed immediately under the existing framework, while other elements, including aggregation and financing, would undergo review in alignment with the original loan agreement terms.
This food security initiative is an integral part of Nigeria’s broader strategy to combat food insecurity, improve agricultural productivity, and stabilize the economy through sustainable international collaborations.
This JICA loan comes as President Bola Tinubu recently sought Senate approval for a fresh external borrowing plan totaling approximately $21.5 billion under Nigeria’s 2025–2026 borrowing program. This broader request also includes a separate loan of 15 billion Japanese Yen and a €51 million grant to support key development priorities.
According to President Tinubu’s letter to the National Assembly, these new facilities are intended to stimulate employment, facilitate skill acquisition, foster entrepreneurship, alleviate poverty, and enhance food security across the country.
The President’s borrowing requests emerge amid increasing concerns regarding Nigeria’s expanding national debt profile. As of December 2024, Nigeria’s debt to JICA stood at $53.31 million, representing a small fraction of the country’s total bilateral and overall external debt. If the new food security loan is fully approved and disbursed, Nigeria’s debt to Japan is projected to increase to $163.31 million.
