(JICA), has offered a $700 million loan to support Nigeria’s food security initiati

The Japanese government, through the Japan International Cooperation Agency (JICA), has offered a $700 million loan to support Nigeria's food security initiatives. This comes following President Bola Tinubu's commitment to the partnership, which aims to boost agricultural productivity and stabilize the economy.

The loan is part of a broader 2025-2026 borrowing program that includes a total of about $21.5 billion from various external sources. The president has emphasized that the funds are intended to create jobs, enhance skill acquisition, foster entrepreneurship, reduce poverty, and improve food security in the country.

The Federal Ministry of Agriculture and Rural Development stated that while the immediate production activities will proceed as planned under the existing framework, other components such as aggregation and financing will be reviewed in accordance with the original loan agreement.

Nigeria's debt profile has been a subject of concern, with the country's external debt standing at $57.33 billion as of December 2023. The additional loan from JICA will increase the debt owed to Japan to $163.31 million, which is 0.12% of the total external debt stock.

The Senate will now consider and decide on the President's loan request, which is in line with the government's efforts to secure external financing for various projects to drive economic growth and development. The funds are expected to be used for projects that align with the country's strategic objectives and contribute to sustainable development goals.

The decision to proceed with the JICA loan is a testament to the ongoing commitment between Nigeria and Japan to collaborate on critical development projects that can positively impact the lives of the Nigerian people. This partnership underscores the importance of international cooperation in addressing the nation's challenges, particularly in the area of food security and economic stability.