Tinubu seeks $110m Japanese loan for food security as terrorists prevent farming
By Jeph Ajobaju, Chief Copy Editor
Bola Tinubu is seeking a ¥15 billion ($110 million) Japanese loan to improve food security in Nigeria, apart from another $24 million loan the President is processing, both of which will significantly raise national debt beyond the current N144 trillion.
Atiku Abubakar of the Peoples Democratic Party (PDP) already highlighted that under Tinubu, the country’s debt skyrocketed 150 per cent in two years from N49 trillion in 2023 to N144 trillion.
This is despite Tinubu announcing in his Democracy Day broadcast last month that the treasury generated N6 trillion revenue in the first quarter of 2025.
The quest for the additional $110 million loan was disclosed in a statement issued on Wednesday by the Federal Ministry of Finance and Coordinating Ministry of the Economy.
It said the government has intensified discussions with the Japan International Cooperation Agency (JICA) to quicken implementation of a ¥15 billion ($110 million) emergency loan to improve food security across Nigeria.
The statement was issued after a meeting involving Finance Minister Wale Edun, Agriculture and Food Security Minister Abubakar Kyari, and officials from JICA.
It explained that Edun and Kyari “today met with senior representatives of [JICA] to advance the implementation of the Food Security Emergency Loan Support Programme.
“The JPY 15bn facility (approximately $110m) aims to support Nigeria’s food production systems and enhance resilience amid ongoing global supply challenges.”
With the rainy season underway, the statement added, “both ministers emphasised the importance of swift, coordinated action to maximise impact for farmers and rural communities.”
JICA reaffirmed its commitment to the programme but requested formal clarification on proposed implementation changes.
“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 development comes a few days after Tinubu wrote to the National Assembly (NASS) seeking approval for a new external borrowing plan of $21.5 billion under the 2025–2026 borrowing framework.
In addition to the $21.5 billion request, he is also seeking approval for the ¥15 billion loan and a €51 million grant to support development initiatives.
Tinubu explained in his letter to the NASS that the loans are aimed at generating employment, promoting skill acquisition, fostering entrepreneurship, reducing poverty, and improving food security.
Data from the Debt Management Office (DMO) shows that Nigeria owes JICA $53.31 million as of December 2024 – 0.88 per cent of the country’s total bilateral debt and 0.12 per cent of total external debt.
Nigeria’s debt to JICA will rise to $163.31 million with the new food security loan.
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