- Makinde: It’s misrepresentation…It’s World Bank Funds, Not FG
- Presidency: The Federal Govt Guaranteed the Loan to Support States…
By Abiola Olawale
The Presidency and Governor Seyi Makinde of Oyo State are embroiled in a heated debate over a N570 billion loan from the World Bank.
The issue began after Makinde, in a press release last week, refuted President Bola Ahmed Tinubu’s assertion that the federal government allocated N570 billion to the 36 states of the federation.
Tinubu, during a nationwide broadcast, had maintained 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 via 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 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”.
Makinde had said: “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 states, 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.”
In a counter-response, the presidency knocked Makinde, saying that the Governor is trying to reduce the N570 billion loan received by the 36 states in Nigeria to a matter of semantics rather than utilising the money to benefit the lives of his people.
This was contained in a press statement issued by a Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi.
Ajayi, in the statement, emphasized that the fund is a World Bank loan, which the Federal Government guaranteed, and not a grant.
He also explained that the issue of whether it was a grant or a loan should not be at the centre of discussion but rather how the money can assist in the country’s development.
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.”
