The Presidency clarified the ongoing debate about the N573 billion received by states, stating that the funds are part of a World Bank loan guaranteed by the Federal Government, not a grant.
According to Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, the focus should be on how these funds can aid in the country’s development rather than on whether they constitute a loan or a grant.
Ajayi stated, “The key point, as highlighted in the President’s address, is that the states received funds. This amount, totaling N570 billion, represents the second tranche under the COVID-19 livelihoods support scheme, funded by the World Bank through the NG-CARES Programme. The Federal Government guaranteed this World Bank facility, as all multilateral loans require a sovereign guarantee, meaning the Federal Government will repay the loan if the states cannot.”
He emphasized that there should be no controversy from any governor, stressing that the main objective is to serve the people and improve their lives. Ajayi reiterated that the President and the governors share the responsibility of nation-building, with the states now having more resources to enhance services in critical areas such as education, healthcare, security, and infrastructure.
Ajayi also noted that the issue is not merely a matter of semantics, explaining that this payment is the second tranche, with the first disbursed in October or November of the previous year.
In response, Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule clarified that they did not receive any money from the Federal Government aside from the World Bank loan. Makinde explained that the funds were part of the World Bank-assisted NG-CARES project, a COVID-19 Recovery intervention, where states were reimbursed for money already spent after verification by the World Bank.
Makinde stated, “The Federal Government did not give any state money; they were simply the conduit through which the reimbursements were made to states for money already spent.”
