FG, JICA Advance Talks on ¥15bn ($110m) Emergency Loan to Boost Food Security

 





The Federal Government of Nigeria has ramped up negotiations with the Japan International Cooperation Agency (JICA) to accelerate the rollout of a ¥15 billion (approximately $110 million) emergency loan aimed at strengthening food security nationwide.

This development was confirmed in a statement released on Wednesday by the Federal Ministry of Finance and the Coordinating Ministry of the Economy, following a high-level meeting between:

  • Minister of Finance and Coordinating Minister of the Economy, Wale Edun

  • Minister of Agriculture and Food Security, Senator Abubakar Kyari

  • Senior JICA representatives

“The meeting focused on advancing the implementation of the Food Security Emergency Loan Support Programme,” the statement read.

Loan Targets Agricultural Resilience Amid Inflation

The $110 million facility is structured to support Nigeria’s food production systems and improve resilience in response to global supply chain disruptions and rising inflation.

“The JPY 15bn facility aims to strengthen Nigeria’s food systems and provide resilience against persistent global supply challenges,” the ministry stated.

Urgency as Rainy Season Begins

With the 2025 rainy season already underway, both ministers stressed the urgent need for rapid execution of the programme’s key components to reach farmers and rural communities in time.

“Both ministers emphasised swift, coordinated action to maximise the programme’s impact on rural communities and smallholder farmers,” the statement noted.

JICA Responds, Requests Implementation Clarifications

In response, JICA reaffirmed its commitment to the loan initiative but requested formal clarification on proposed changes to the implementation structure.

It was mutually agreed that core production activities under the current framework would commence immediately, while other components—such as aggregation and financing mechanisms—would be reviewed in line with the original loan agreement.

“JICA welcomed the government’s commitment to implementation and sought clarity on proposed adjustments,” the statement continued.

Context: Tinubu Seeks Broader External Funding

This loan engagement comes shortly after President Bola Tinubu submitted a request to the National Assembly for approval of a $21.5 billion external borrowing plan under the 2025–2026 borrowing framework.

Alongside the $21.5 billion proposal, the President is also seeking legislative approval for:

  • The ¥15 billion JICA loan

  • A €51 million grant to support various development projects

In his correspondence to the Assembly, President Tinubu noted that the proposed facilities are designed to:

  • Generate employment

  • Promote skill acquisition

  • Foster entrepreneurship

  • Reduce poverty

  • Enhance national food security

Nigeria’s Debt Exposure to JICA

According to data from the Debt Management Office (DMO), Nigeria’s current debt to JICA stands at $53.31 million as of December 2024, representing:

  • 0.88% of the nation’s total bilateral debt

  • 0.12% of Nigeria’s total external debt

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

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