Oyo State Governor, Seyi Makinde, has firmly denied President Bola Tinubu’s recent statement that the federal government provided N570 billion to Nigeria’s 36 states.
Governor Makinde clarified that these funds were not a direct grant from the federal government but were, in fact, reimbursements from the World Bank for COVID-19-related expenses.
During a national address, President Tinubu had claimed that his administration had distributed over N570 billion to the states as part of a broader effort to provide economic relief to citizens.
He urged those protesting economic hardships to consider dialogue, stating, “Also, more than N570 billion has been released to the 36 states to expand livelihood support to their citizens.”
However, in a detailed newsletter published on the Oyo State government’s official website, Governor Makinde explained the origin and nature of the funds.
He revealed that these funds were part of the World Bank’s COVID-19 Action Recovery Economic Stimulus (NG-CARES) initiative, designed to help states recover from the economic impact of the pandemic.
Makinde also highlighted that the funds in question were loans, not grants, and thus would need to be repaid by the states. He disclosed that Oyo State had received reimbursements totaling N5.98 billion and N822 million for investments in the NG-CARES program.
“Before I speak more on further actions we have taken to show our commitment to productivity and sustainability, let me respond to a long message I received earlier in the week from a concerned citizen.
“The message was about a purported N570 billion Hardship Fund “given” to the 36 States by the Federal Government. I was queried about what I used the money for.
“Let me state categorically that this is yet another case of misrepresentation of facts. The said funds were part of the World Bank-assisted NG-CARES project—a Programme for Results intervention.
“The World Bank facilitated an intervention to help States in Nigeria with COVID-19 Recovery. CARES means COVID-19 Action Recovery Economic Stimulus.
“It was called Programme for Results because States had to use their money in advance to implement the programme. After the World Bank verified the amount spent by the State, it reimbursed the States through the platform provided at the Federal level.
“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,” Makinde said.
He added, “It is important to note that the World Bank fund is a loan to States, not a grant. So, States will need to repay this loan. Note also that NG-CARES, which we christened Oyo-CARES in our State, predates the present federal administration.
“So, in direct response to the message, the Federal Government did not give Oyo State any money. We have reimbursed funds (N5.98 billion in the first instance and N822 million in the second instance) we invested in the three result areas of NG-CARES, which includes inputs distribution to smallholder farmers within our State.
“In fact, when the World Bank saw our model for the distribution of inputs preceded by biometric capturing of beneficiary farmers, they adopted it as the NG-CARES model.”
