Oyo State Governor Seyi Makinde, in a recent newsletter, addressed claims by President Bola Tinubu led federal government that it had granted N570 billion to the 36 states of Nigeria. Makinde stated that the information is not completely accurate and clarified that the funds were World Bank COVID-19 loans, not grants, facilitated through the federal government.
Makinde’s statement, published on Oyo State’s official website on Thursday, emphasized that the federal government did not directly allocate these funds to the states. Instead, the World Bank provided COVID-19 funds, with the federal government merely serving as an intermediary between the international financial institution and the 36 states.
“The funds were part of the World Bank-assisted NG-CARES project—a Programme for Results intervention,” Makinde explained. “States had to spend their money upfront to implement the program, and the World Bank reimbursed them through the federal government’s platform.”
The governor also stressed that this was not a grant but a loan that states are expected to repay. “It’s crucial to understand that the World Bank funds are loans, not grants,” he noted. “Oyo State received N5.98 billion in the first instance and N822 million in the second instance as reimbursements for our investments under the program.”
Makinde further highlighted that this initiative predates President Tinubu’s administration. “NG-CARES, which we call Oyo-CARES in our state, started before the current federal administration,” he added. “In fact, the World Bank adopted our model for distributing inputs, which includes biometric capturing of beneficiary farmers.”
This clarification comes after President Tinubu announced that his administration had given a total of N570 billion to the states as a palliative measure to ease economic hardship. Tinubu’s statement, made last Sunday during a national address, described the funds as a grant, which Makinde now refutes as a misrepresentation of the actual financial arrangement.
Governor Makinde’s response aims to provide transparency and correct the narrative surrounding the distribution and nature of these funds, emphasizing the responsibility states have in repaying the World Bank loans.
Seunmanuel Faleye is a brand and communications strategist. He is a covert writer and an overt creative head. He publishes Apple’s Bite International Magazine.
