The Presidency has clarified the nature of the N573 billion recently disbursed to Nigerian states, emphasizing that the funds are a World Bank loan guaranteed by the Federal Government, not a grant as some may have believed.
The clarification comes after Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule recently stated that they did not receive any money from the Federal Government, apart from the World Bank loan.
This clarification was provided by Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, who underscored that the focus should be on how the funds can contribute to the country’s development rather than on the semantics of whether it is a loan or a grant. Ajayi described the issue raised by these governors as a matter of semantics, reiterating that the funds had indeed been disbursed to the states.
Ajayi 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.
“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.”