The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced that the Japanese International Cooperation Agency is giving ¥ 15 billion (roughly $99.1 million) to increase food security in Nigeria by assisting its agricultural sector.
The Minister made this announcement in a statement issued on Monday, following the fourth FEC meeting of the year.
The Minister referred to the investment as “free money,” citing its ten-year moratorium and low 1% interest rate, which he believes will not burden the nation’s financial resources.
Edun stated that agriculture investment is critical to President Tinubu’s agenda and will result in higher sector productivity.
“At today’s Federal Executive Council meeting, one of the areas which is emphasis at the moment that we all know is key to getting the economy growing again is agriculture.
“One support for agriculture is from a Japanese International Cooperation Agency funding of a national agriculture growth scheme project. Essentially around ¥15 billion for the agricultural sector. It is essentially free money. It’s a year’s moratorium at a 1% interest rate.
“It is the kind of bilateral support that doesn’t put a string on Nigeria financially and of course help in the agricultural sector,” Edun said.
FG to set up a temporary economic task force
Speaking further, Edun noted that the federal government is planning to set up an economic task force, adding that the president has approved the request from his ministry.
According to him, the task force will be active for six months to implement key economic measures across multiple sectors.
He said these measures will help boost productivity and enhance inclusive and sustained growth in the economy.
“I did share with the Federal Executive Council of a request to set up an economic management team taskforce to over the next six months implement major measures in that growing the economy, increasing production, thereby creating jobs and reducing poverty and of course achieving rapid, sustained and inclusive growth that is the mandate and commitment of Mr. President,” Edun added.
What you should know
Food insecurity has become an increasingly worrisome situation in Nigeria as inflation continues to drive the price of food items in Nigeria.
According to the National Bureau of Statistics, Nigeria’s inflation rate stands at 31.7% as of February 2024, with food inflation as high as 37%.
In response, the federal government has declared a state of emergency on food security nationwide.
In addition, the president also ordered that the national grain reserve be opened and food items be distributed across the country.