By Abiola Olawale
Governor Seyi Makinde of Oyo State has refuted President Bola Ahmed Tinubu’s assertion that the federal government paid N570 billion to the 36 states of the federation.
The Governor, in a press statement issued on Thursday and posted on the official website of Oyo State, maintained that the information from the President is not “entirely accurate”.
It would be recalled that Tinubu, during a nationwide broadcast, said that his administration has given the total sum of N570 billion to the 36 States as a palliative measure to ameliorate the citizens’ economic condition.
According to the president, the States received this huge sum as a grant from the federal government.
The President had said: “Also, more than N570 billion has been released to the 36 states to expand livelihood support to their citizens, while 600,000 nano-businesses have benefitted from our nano-grants. An additional 400,000 more nano-businesses are expected to benefit.”
However, Makinde, in his reaction to Tinubu’s statement, said the funds disbursed were not a direct allocation from the federal government.
He explained that while the 36 Governors received the said N570 billion, it was a fund from the World Bank. He added that the funding was contingent on what the states had already spent on COVID-19 programs and that the federal government only acted as an intermediary between the international creditor and the 36 states.
He stated: “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 also clarified that the funding from the World Bank was given to the state as a loan that is expected to be paid back by each state.
According to him, Oyo State received N5.98 billion in the first instance and N822 million in the second instance as reimbursement which was part of the investment of the State government under the program.
He continued: “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.”
