The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has announced that the Japanese International Cooperation Agency is allocating ¥ 15 billion (approximately $99.1 million) to enhance food security in Nigeria by supporting its agricultural sector.
The Minister made this disclosure in a statement on Monday after the fourth FEC meeting of the year, according to Nairametrics.
The Minister referred to the investment as free money and highlighted its ten-year moratorium and a minimal interest rate of 1%, which he believes will not burden national finances.
According to Edun, agricultural investment is important to President Tinubu and the investment will certainly lead to increased productivity in the sector.
He said “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 continued by noting that the Federal Government is preparing to set up an Economic Task Force and that the President has approved his Ministry’s request.
According to him, the task force will be active for six months to implement key economic measures across multiple sectors.
He said that these measures would contribute to increasing productivity as well as enhancing the overall and sustainable growth of the economy.
“I did share with the Federal Executive Council 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.
As inflation continues to drive up food prices in Nigeria, food insecurity has become an increasingly worrying situation in Nigeria.
Nigeria’s inflation rate stands at 31.7% as of February 2024, with food inflation as high as 37%, according to National Bureau of Statistics data.
Consequently, the federal government has declared a state of emergency on food security nationwide.
