FG Secures ¥15bn Japanese Loan to Boost Food Security

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

This development was revealed in a statement issued Wednesday by the Federal Ministry of Finance and Coordinating Ministry of the Economy following a high-level meeting. The session brought together the Minister of Finance, Wale Edun; the Minister of Agriculture and Food Security, Senator Abubakar Kyari; and top JICA officials.

The loan is expected to fund critical interventions in Nigeria’s agricultural sector as the country grapples with soaring food prices and widespread insecurity that continues to disrupt production and supply chains.

“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 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 underway, the ministers stressed the urgency of executing key components of the programme to ensure timely support for farmers and rural communities.

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

In response to Nigeria’s urgent food security needs, JICA has reiterated its strong commitment to the emergency loan programme. However, the agency requested formal clarifications regarding proposed changes to how the loan’s components would be implemented.

It was agreed during the meeting that agricultural production activities would kick off immediately under the existing framework to avoid delays. Meanwhile, other critical aspects—such as aggregation and financing mechanisms—will undergo further review to ensure full alignment with the original loan terms.

This measured approach aims to balance swift action with careful adherence to agreed protocols, ensuring the programme’s effectiveness and sustainability.

“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.

Just days after the government’s discussions with JICA on fast-tracking the ¥15bn emergency loan, President Bola Tinubu formally approached the National Assembly seeking approval for a new external borrowing plan totaling $21.5 billion under the 2025–2026 framework.

The borrowing request doesn’t stop there. Alongside the $21.5bn, Tinubu is also asking for the nod on the ¥15bn JICA loan and a €51 million grant—all geared towards boosting employment, skill acquisition, entrepreneurship, poverty reduction, and food security.

But here’s the kicker: Nigeria’s current debt to JICA already stands at $53.31 million, a fraction—0.88%—of its total bilateral debt and a mere 0.12% of total external debt as of December 2024. Should the new loan get the green light, that figure will nearly triple to $163.31 million.

This move underscores the tightrope the country walks—striving to harness external funding for urgent development needs while managing an already heavy debt burden. The coming weeks will be critical in determining how Nigeria navigates these competing pressures, with lawmakers weighing immediate growth imperatives against long-term fiscal sustainability.