Nigeria’s federal government is intensifying efforts with the Japan International Cooperation Agency (JICA) to roll out a ¥15 billion (about $110 million) emergency loan aimed at boosting food security across the country.
This was confirmed by the Federal Ministry of Finance and Coordinating Ministry of the Economy after a strategic meeting on Wednesday that involved Finance Minister Wale Edun, Agriculture Minister Abubakar Kyari, and senior JICA officials. The loan is part of Nigeria’s broader agenda to strengthen its food systems and safeguard farmers from the ongoing impact of global supply chain disruptions and inflation.
The government said the programme would focus on reinforcing food production and building resilience in rural communities, particularly with the 2025 rainy season already underway. The ministers stressed the urgency of deploying core elements of the programme to ensure timely intervention for farmers.
JICA reaffirmed its commitment to the partnership but requested formal clarification on proposed changes to the original implementation plan. It was agreed that immediate production activities would move forward, while other components such as food aggregation and financing would be reassessed under the terms of the initial agreement.
This loan initiative is just one part of Nigeria’s strategy to tackle rising food insecurity and stabilise the economy. It comes as President Bola Tinubu seeks Senate approval for a fresh external borrowing plan of about $21.5 billion for 2025–2026. Included in that proposal is the ¥15 billion JICA loan, along with a €51 million grant, intended to support key development areas such as employment generation, skill development, entrepreneurship, poverty reduction, and food security.
However, the plan has sparked fresh concerns over Nigeria’s growing debt. As of December 2024, Nigeria owes JICA $53.31 million, accounting for 0.88% of its total bilateral debt and 0.12% of its total external debt stock. If approved, the new loan would raise Nigeria’s debt to Japan to over $163 million.
