The Presidency has clarified the recent disbursement of N573 billion to Nigerian states, emphasizing that the funds are a World Bank loan guaranteed by the Federal Government, not a grant.
This clarification follows statements from Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule, who mentioned they received no funds from the Federal Government aside from the World Bank loan.
Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, provided this clarification, stressing that the focus should be on how these funds can aid the country’s development rather than on whether they are classified as a loan or a grant. Ajayi reiterated that the funds had indeed been disbursed to the states.
Ajayi stated, “The issue is not whether it is a loan or a grant. The important point, as mentioned in the President’s broadcast, is that states received funds. The N570 billion, which is the second tranche under the COVID-19 livelihoods support scheme funded by the World Bank through the NG-CARES Programme, has been disbursed. The key point is that states are getting the necessary support to enhance the lives of the people.”
He further explained, “The World Bank facility is guaranteed by the Federal Government, as every multilateral loan requires a sovereign guarantee. This ensures that the Federal Government will repay the loan if the states are unable to. There should be no controversy if the goal is to serve the people and improve their lives.”
Ajayi continued, “The President is committed to improving the lives of citizens, just as governors are in their respective states. President Tinubu will continue working to grow the economy and promote shared prosperity for all Nigerians. He sees the governors as partners in the nation’s development. The undeniable fact is that states now have more resources to enhance services, especially in critical areas like education, healthcare, security, and infrastructure.”
He concluded, “Some governors may be focusing on semantics, but the essential fact remains that the Federal Government disbursed the funds to the states. The N573 billion is actually the second tranche, with the first tranche having been paid in October or November last year.
