Oyo State Governor Seyi Makinde has refuted President Bola Tinubu’s statement that the federal government provided ₦570 billion in grants to the 36 states of Nigeria. According to Makinde, the funds were actually loans facilitated by the World Bank under the NG-CARES program, not direct grants from the federal government.
In a detailed newsletter published on Thursday, Makinde explained that the ₦570 billion mentioned by President Tinubu was part of the World Bank’s COVID-19 Action Recovery Economic Stimulus (NG-CARES) program. This initiative was designed to help states recover from the economic impact of the pandemic, with the federal government merely acting as a conduit for the distribution of the funds.
“The federal government did not directly give any state money,” Makinde clarified. “These were reimbursements for expenses already incurred by the states in their COVID-19 response, facilitated by the World Bank through the federal government’s platform. It’s important to note that these funds are loans, not grants, and states are expected to repay them.”
Makinde further revealed that Oyo State received ₦5.98 billion in the first tranche and ₦822 million in the second tranche as part of the NG-CARES program. He emphasized that this program was initiated before the current administration took office and that the funds were allocated based on each state’s prior spending on pandemic relief efforts.
This clarification comes after President Tinubu announced that his administration had released ₦570 billion to the states to alleviate economic hardship. However, Makinde’s statement underscores that the funds were part of a loan arrangement with the World Bank, not a gift or grant from the federal government.
Makinde’s explanation provides important context for understanding the financial obligations associated with the NG-CARES funds, highlighting the need for accurate information regarding the sources and terms of such financial support.
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