The Presidency has addressed the ongoing debate over the N573 billion fund received by Nigerian states, clarifying that the money is a World Bank loan guaranteed by the Federal Government, not a grant as some had speculated. This clarification was made by the Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, on Sunday.
Ajayi emphasized that the focus should not be on whether the funds were a loan or a grant, but rather on how the money can be used to support the development of the country.
According to Ajayi, the N573 billion is the second tranche of funds under the COVID-19 Livelihoods Support Scheme, which is part of the NG-CARES Programme funded by the World Bank. The Federal Government guarantees this loan, ensuring repayment if any state is unable to meet its obligations. He stressed that the states should focus on using these funds to improve the lives of their citizens.
He said: “I think the issue is not whether it is a loan or grant.
“The point, as clearly stated in the President’s broadcast, is that the states got money.
“The amount, which is the second tranche under the COVID-19 livelihoods support scheme under the NG-CARES Programme funded by the World Bank, is N570 billion.
“The fact is states are getting needed support and funding to improve the lives of the people.
“The World Bank facility is guaranteed by the Federal Government because every multilateral loan must have a sovereign guarantee.
“This means the loan will be repaid by the Federal Government in case the sub-nationals are unable to.
“There should be no hue and cry by any governor really if the objective is to serve the people and make life better for the masses.
“The President is elected to make life better for citizens the same way the governors are elected to do the same in their respective states.
“President Tinubu will continue to work to expand the economy and enable shared prosperity for all Nigerians.
“He considers the governors as partners in progress and the job of nation-building.
“What can’t be denied is that the states have more resources to deliver better service to the people, especially in critical areas of education, healthcare, security and physical infrastructure like roads among others.”
He added, “I think the issue here is one or two governors trying to reduce the matter to semantics. It is much more than that.
“The fact remains that the Federal Government paid the states the money and the N573 billion is actually the second tranche.
“The first tranche was paid sometime in October or November last year,” he said.
The statement was issued in response to comments made by some governors, including Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule, who claimed that they had not received any funds from the Federal Government except for the World Bank loan. Governor Makinde stated, “The said funds were part of the World Bank-assisted NG-CARES project—a Programme for Results intervention.”
Makinde further clarified that the World Bank reimbursed states after verifying the amounts spent on the COVID-19 recovery program. He pointed out that the Federal Government did not provide the states with any direct funds but acted as a conduit for the reimbursements made by the World Bank.
