The Federal Government of Nigeria is accelerating talks with the Japan International Cooperation Agency (JICA) to fast-track the implementation of a ¥15 billion (approximately $110 million) emergency loan aimed at enhancing food security nationwide.

The Ministry of Finance disclosed this after a high-level meeting in Abuja on Wednesday, attended by Finance Minister Wale Edun, Agriculture and Food Security Minister Senator Abubakar Kyari, and senior JICA representatives.

According to the ministry’s statement, the loan facility is part of a broader Food Security Emergency Loan Support Programme intended to strengthen Nigeria’s agricultural productivity and resilience amid rising inflation and global supply disruptions.

“This programme is essential in addressing the pressing food production challenges facing our country,” the statement read. “It will directly support our farmers and rural communities during this critical rainy season period.”

With farming activities intensifying across the country, the ministers emphasized the urgency of executing core components of the programme without delay.

JICA, while reaffirming its commitment to the programme, requested official clarification regarding proposed changes to the loan’s implementation strategy. Both parties agreed that production-related activities would commence immediately under the current framework, while other elements, including product aggregation and financial structuring, would undergo further review in line with the original agreement.

This development follows President Bola Tinubu’s recent request to the National Assembly for approval of a new external borrowing package totaling $21.5 billion for the 2025–2026 period. Included in the request is the ¥15 billion JICA loan and an additional €51 million grant for key development initiatives.

In his letter to the legislature, President Tinubu said the proposed borrowing would focus on food security, employment creation, skill development, and poverty reduction.

Debt Impact

As of December 2024, Nigeria’s debt to JICA stood at $53.31 million, according to the Debt Management Office. If the new loan is approved, the country’s total debt to the Japanese agency would increase to $163.31 million—representing 0.88% of Nigeria’s bilateral debt and 0.12% of its total external debt.

While the government continues to face scrutiny over its growing debt burden, officials argue that targeted, concessional loans like the JICA facility are crucial to addressing urgent national challenges such as food insecurity and economic diversification.

The collaboration with JICA marks a renewed push by the Nigerian government to strengthen international partnerships and mobilize resources for agricultural transformation.