Presidency To Makinde On N573bn: It Doesn’t Matter Whether It’s Grant or Loan

The Presidency has reacted to the raging controversy that had trailed the N573 billion received by states as support under President Bola Tinubu in the last one year.

The response is coming in the wake of uproar the issue generated between governors and the federal government aftermath of President Tinubu’s national broadcast on the just nationwide hunger protest.

Governor Seyi Makinde of Oyo State had contradicted the President, saying the money was not directly from the federal government.

Makinde had described the president’s statement on the issue as “yet another case of misrepresentation of facts.”

The governor said: “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 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 states, 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.”

But in a statement, Senior Special Assistant to the President on Media and Publicity, Mr. Temitope Ajayi, said the status of the fund should not be the focus.

According to him, the issue of whether it was a grant or a loan should not be at the centre of discussion but rather how the money can assist in the country’s development.

“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,” Ajayi explained.

He continued; “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. 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.”

The presidential aide said 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”, he said.

Ajayi described the issue as more than just semantics, explaining that the payment was the second tranche, with the first paid in October or November last year.

“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,” he said.