Makinde refutes Tinubu’s claims on N570bn funds to States, clarifies World Bank loan details

Oyo State Governor, Seyi Makinde, has countered recent claims made by President Bola Tinubu that the federal government granted N570 billion to the 36 states as a palliative measure.

In a newsletter published on Thursday, Governor Makinde clarified that the funds were not direct allocations from the federal government, but rather World Bank COVID-19 funds, with the federal government acting as an intermediary.

Makinde explained that the funds, part of the World Bank-assisted NG-CARES project, were reimbursements for money the states had already spent on COVID-19 recovery programs.

“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,” Makinde said.

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He emphasized that the federal government did not grant this money to the states, but merely facilitated the disbursement from the World Bank.

“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,” Makinde stated. He also highlighted that the funds were loans, not grants, and that the states are responsible for repayment.

Makinde pointed out that the NG-CARES program predates President Tinubu’s administration, with Oyo State receiving N5.98 billion in the first batch and N822 million in the second as part of the reimbursement process.

He stressed the importance of accurately representing the nature of the funds, particularly given the misconception that the money was a grant from the federal government.

This clarification comes in response to President Tinubu’s announcement earlier in the week, where he claimed that his administration had disbursed N570 billion to states as part of efforts to alleviate economic hardships.

According to him, Oyo State received N5.98 billion in the first instance and N822 million in the second instance as reimbursement which was part of the investment of the State government under the program.

“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,” Makinde added.

benefitted from our nano-grants. An additional 400,000 more nano-businesses are expected to benefit.”

However, the governor of Oyo said this is not the case, as the money received by the States was a loan from the World Bank and not a grant from the federal government.