The Presidency clarified yesterday the ongoing controversy surrounding the ₦573 billion received by states, emphasizing that the fund in question is a World Bank loan, not a grant. This clarification comes amidst statements from some governors questioning the nature of the fund.
In a statement by the Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, the Presidency noted that the focus should be on how the funds can aid the country’s development, rather than on the debate over whether it is a loan or a grant.
Ajayi stated, “The real issue is not whether it is a loan or a grant. What matters, as clearly stated in the President’s broadcast, is that the states received funds. The ₦573 billion represents the second tranche of the COVID-19 Livelihoods Support Scheme under the NG-CARES Programme, funded by the World Bank.”
Ajayi further explained that the World Bank facility is guaranteed by the Federal Government, as all multilateral loans require a sovereign guarantee. He emphasized that this arrangement means the Federal Government would be responsible for repayment if any state is unable to fulfill its obligations.
“There should be no outcry from any governor if the objective is truly to serve the people and improve their lives,” Ajayi added. He reiterated that both the President and the governors were elected to enhance the well-being of citizens in their respective jurisdictions, highlighting that the funds provide states with the resources needed to deliver better services in crucial areas such as education, healthcare, security, and infrastructure.
Ajayi also addressed the ongoing debate as a matter of semantics, noting that the payment in question is the second tranche, with the first having been disbursed in October or November of the previous year.
Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule had recently asserted that they did not receive any direct funds from the Federal Government, but rather a World Bank loan. Governor Makinde remarked, “This is yet another case of misrepresentation. The funds were part of the World Bank-assisted NG-CARES project, a Programme for Results intervention aimed at helping states in Nigeria with COVID-19 recovery.”
Makinde elaborated that states had to use their own funds in advance to implement the programme, with the World Bank reimbursing them after verifying the expenses. He stressed that the Federal Government merely facilitated the reimbursement process, and no direct funds were distributed to the states.
