Governor Seyi Makinde of Oyo says states did not receive N570billion from the federal government.
While addressing Nigerians in a broadcast during the #EndBadGovernance nationwide protests against hunger and hardship, President Bola Tinubu had said his administration had disbursed ₦570bn to the 36 states.
“Also, more than ₦570bn 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,” the President said.
But Makinde in a newsletter personally signed by him and shared on his X handle on Thursday, said the state was not in the know of such a grant.
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Makinde said: “I responded to a question from a concerned citizen of Oyo State regarding the claim that the Federal Government ‘gave’ States over N570 billion as some kind of ‘hardship fund’ for citizens.
“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 the 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.
“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.”
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The governor further explained that the loan came in two tranches to states.
According to him, Oyo State got ₦5.98 billion in the first tranche and ₦822 million in the second tranche.
“So, in direct response to the message, the Federal Government did not give Oyo State any money. We were reimbursed funds (₦5.98 billion in the first instance and ₦822 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. In fact, when the World Bank saw our model for the distribution of inputs preceded by biometric capturing of beneficiary farmers, they adopted it as the NG-CARES model,” governor Makinde added.
Makinde is the second Peoples Democratic Party (PDP) governor to have tackled Tinubu over the speech in recent times.
Governor Bala Mohammed of Bauchi had described the speech as empty.
In the same vein, their All Progressive Congress APC counterpart, Governor, Abdullahi Sule of Nasarawa State said the World Bank loan received by states is for infrastructural projects and not to cushion the effects of hardship faced by Nigerians.
Speaking on Channels Television on Thursday night, the governor explained that states received the money in batches with the latest being received in June.
“The money is tied to certain projects. It is almost like a regimented loan from the World Bank. The money is not for rice, it is not for palliatives, it is not for anything in that line,” he said.
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“That money came from the World Bank and that was the second disbursement which came I November last year. The account amount was credited to the account of every other state, sometimes around January.”
The governor explained that during the second tranche received by states, Nasarawa received N13.6 billion, representing over 10 per cent of the amount.
When asked about the per cent given for the repayment, the governor said: “The World Bank is actually doing it at no interest.
“The reason is because it was coming to support states because of the Covid. It actually started around the year 2020.
“The first disbursement was done even before Mr President actually came in May 2023. The third disbursement was the one done in June that was advertised. Every state has been credited and no state is denying it.” He said.