Nigeria’s total debt to the Japan International Cooperation Agency (JICA) is expected to rise significantly from $53.31 million to $163.31 million if the proposed ¥15 billion (approximately $110 million) food security loan is approved by the National Assembly.
The Federal Government, through the Ministry of Finance and the Ministry of Agriculture and Food Security, has entered advanced discussions with JICA to accelerate the implementation of the emergency loan facility.
The disclosure was made in a joint statement issued by the Federal Ministry of Finance and Coordinating Ministry of the Economy on Wednesday following a high-level meeting involving Minister of Finance Wale Edun, Minister of Agriculture Senator Abubakar Kyari, and senior representatives of JICA.
According to the statement, the $110 million loan is aimed at supporting Nigeria’s food production systems and improving resilience amid global supply chain disruptions and rising domestic inflation.
“The JPY 15bn facility (approximately $110m) aims to support Nigeria’s food production systems and enhance resilience amid ongoing global supply challenges,” the ministry said.
The meeting underscored the urgency of implementing key components of the programme due to the commencement of the rainy season. Both ministers emphasised the need for swift and coordinated action to ensure timely support for farmers and rural communities.
JICA reaffirmed its commitment to the loan programme but requested formal clarification on recent implementation adjustments proposed by the Nigerian government.
It was agreed that production activities would commence immediately under the existing loan framework, while components such as aggregation and financing would be reviewed to align with the original terms.
This development comes as President Bola Tinubu formally requested the National Assembly’s approval for a new $21.5 billion external borrowing plan under the 2025–2026 borrowing framework.
The president’s request also includes the ¥15 billion JICA loan and a separate €51 million grant aimed at supporting development programmes across key sectors.
Tinubu stated in the letter to the legislature that the external financing initiatives are designed to generate employment, promote entrepreneurship, support food security, and reduce poverty across the country.
As of December 2024, data from the Debt Management Office (DMO) indicates that Nigeria’s outstanding debt to JICA stood at $53.31 million, representing 0.88% of the country’s total bilateral debt and 0.12% of total external debt. If the new food security loan is approved, Nigeria’s cumulative debt to JICA will increase by over 206%, reinforcing JICA’s position as a key bilateral creditor.
The loan aligns with the government’s broader fiscal and agricultural agenda aimed at ensuring food self-sufficiency and reducing reliance on imports.
However, concerns remain over Nigeria’s rising debt burden and the sustainability of external borrowing as inflationary pressures and currency volatility persist.
