NIGERIA: FG In Talks With Japan For ¥15bn Food Security Loan

By Onoja Baba, Nigeria 

The Federal Government is in advanced talks with the Japan International Cooperation Agency over a ¥15bn emergency loan to boost food security in Nigeria.

The loan, valued at about 110 million dollars, is part of efforts to address challenges in food production and supply chains across the country.

The development was disclosed in a statement by the Federal Ministry of Finance and Coordinating Ministry of the Economy on Wednesday.

The announcement followed a high-level meeting between the Minister of Finance, Wale Edun, the Minister of Agriculture and Food Security, Senator Abubakar Kyari, and senior officials from JICA.

According to the statement, the loan is designed to strengthen Nigeria’s food systems and help mitigate the impact of global supply disruptions and inflation.

With the rainy season already underway, both ministers underscored the urgency of implementing the programme to ensure farmers receive timely support.

JICA reaffirmed its support for the initiative but requested formal clarification on proposed changes to the implementation strategy.

It was agreed that production efforts would commence immediately, while other components such as aggregation and financing would be reviewed in line with existing loan terms.

The loan discussions come just days after President Bola Tinubu asked the National Assembly to approve a new external borrowing plan worth 21.5 billion dollars.

Alongside that request, the President also sought approval for the 15 billion yen loan from Japan and a 51 million euro grant for various development projects.

In his letter to the legislature, Tinubu explained that the funds are intended to promote employment, entrepreneurship, and food security across the country.

Figures from the Debt Management Office show that Nigeria currently owes JICA 53.31 million dollars.

This represents 0.88 percent of Nigeria’s total bilateral debt and 0.12 percent of its total external debt.

If the food security loan is approved, Nigeria’s debt to JICA would rise to 163.31 million dollars.