Despite strong objections from international development partners, Nigeria’s Minister of Finance, Wale Edun, remains adamant about diverting N100 billion from the N186 billion grant provided by the Japan International Cooperation Agency (JICA) to the National Agricultural Land Development Authority (NALDA), Newsmen has learnt.
According to sources, the move seeks to transform NALDA into a key agricultural development agency to execute government projects, bypassing the original agreement that designated the Ministry of Agriculture as the primary implementing body.
JICA, AFDB Raise Alarm Over Violation of Agreements
JICA, a Japanese governmental agency providing technical and financial support for Nigeria’s infrastructure, agriculture, and education sectors, has formally rejected the Finance Ministry’s restructuring plan. In a letter dated May 22, 2025, JICA insisted that the funds must remain under the Nigeria Agro-Pocket Project (NAGS) Secretariat, as agreed in earlier meetings.
Similarly, the African Development Bank (AfDB), during a stakeholder meeting on May 23, 2025, endorsed the existing NAGS 1.0 model and urged that future funding, including JICA’s, follow the same structure. The AfDB declared NAGS 1.0 a success, emphasising that the Ministry of Agriculture should remain the implementing body.
Finance Ministry’s Controversial Sharing Formula
Despite these objections, sources said the Finance Ministry has proposed a new structure: N100 billion to NALDA for an Anchor Borrowers’ Scheme managed alongside AFEX Commodities Exchange (replacing CBN’s role).
“N1.5 billion to the Nigerian Agricultural Development Fund (NADF) for fund management (1.5% of total funds) and N86 billion to the Ministry of Agriculture to continue NAGS,” a source said.
Sources reveal that the Minister of Agriculture, under political pressure, has reluctantly consented to the arrangement, provided his ministry bears no liability for fund mismanagement.
Sources told Newsmen that JICA’s position is that the proposed changes will drastically reduce the Ministry of Agriculture’s role, contrary to original agreements, risk delays and cancellation due to required board reapprovals, among others.
The agency has called for an emergency high-level meeting with AfDB and both ministries to resolve the dispute.
Past Failures Haunt New Proposal
The Finance Minister’s push comes amid scrutiny over past agricultural financing disasters. A notable one is the Anchor Borrowers’ Programme, which left banks with hundreds of billions in bad debts.
“We would like further state all that diversion of funds and violation of agreements signed on this matter shall be subject to international money laundering affairs. This can taint Nigeria’s image in the eyes of the world and further damage our rating and ability to attract finance,” one of the sources said.
“We would like to remind the public of the huge damages created by the Anchor Borrower Scheme, the diversion of funds and the huge debt of up to hundreds of billions of Naira created by the scheme. This government has condemned Godwin Emefiele (former Central Bank governor) and has fired his entire team on the basis of this programme and others,” a source said.
“Banks lost faith in agricultural lending, and the government, two years later, is trying to recreate a failed programme by the people who failed it the most.”
The sources also referenced AFEX’s alleged involvement in warehouse fraud, including a recent Taj Bank scandal where missing grains caused massive losses.
It was learnt that a coalition of stakeholders had submitted a petition to President Bola Tinubu, urging immediate intervention to halt the diversion of JICA funds, allow the Ministry of Agriculture to lead NAGS 2.0 as originally designed, and prevent another failed scheme that could exacerbate food insecurity.
Earlier in May, some concerned sources within the Federal Ministry of Agriculture accused the Ministry of Finance of overreach, abuse of power, undue interference, encroachment on the agriculture ministry’s constitutional mandates, and an attempt to destabilise the agricultural sector and the country’s agricultural development framework.
In a letter to prominent human rights lawyer and Senior Advocate of Nigeria (SAN), Femi Falana, insiders at the Federal Ministry of Agriculture voiced “pressing concerns” over recent developments they said could jeopardise the progress made under NAGS.
According to the letter, the concerned insiders revealed that the Ministry of Agriculture had deployed $134 million, directly benefiting nearly one million farmers through a decentralised, state-led approach.
“This model empowered over 1,000 local agro-dealers, promoted inclusion, and created a sustainable ecosystem for input distribution and market access,” the letter read in part.
However, the sources alleged that the Federal Ministry of Finance, under the leadership of Minister Wale Edun, was endorsing AFEX Commodities Exchange as the exclusive implementing partner for two upcoming agriculture projects supported by JICA and the AfDB, amounting to $310 million.
The letter read, “Unfortunately, current actions led by the Federal Ministry of Finance, through its endorsement of AFEX Commodities Exchange as the primary implementing partner for the upcoming JICA and AFDB-supported projects ($110 million + $200 million planned), pose a serious risk to the decentralisation model.”
The concerned insiders warned, “Under this arrangement, AFEX is being positioned to monopolise every stage of the value chain: input procurement, distribution, warehousing, aggregation, subsidy administration, commodity marketing, and exchange listing.
“This proposal echoes the failed Anchor Borrowers Program, where AFEX was reportedly one of the largest defaulters.”
When Newsmen reached out to Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, he said officials familiar with the matter were away in Côte d’Ivoire.
The ministry’s official response was still being awaited at the time of filing this report.
