The Presidency has clarified the controversy surrounding the N573 billion received by states, emphasizing that the fund is a World Bank loan guaranteed by the Federal Government, not a grant. The clarification was issued by the Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, who stressed that the focus should be on how the money can aid the country's development rather than whether it is a loan or grant.
Ajayi highlighted that the funds, which are part of the COVID-19 livelihoods support scheme under the NG-CARES Programme, are crucial for improving the lives of Nigerians. He explained that the World Bank facility, guaranteed by the Federal Government, ensures that the loan will be repaid by the Federal Government if the states are unable to do so. He urged the governors to concentrate on using the funds to serve the people and improve critical areas like education, healthcare, and infrastructure.
The controversy intensified when Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule clarified that they had only received funds as part of the World Bank-assisted NG-CARES project, a program aimed at helping states with COVID-19 recovery. They emphasized that the Federal Government did not give any state money directly but acted as a conduit for the World Bank's reimbursements for funds already spent by the states.
Ajayi concluded by reiterating that the recent payment was the second tranche of the support, with the first tranche disbursed in late 2023. He urged the public to view the issue beyond semantics and focus on the positive impact the funds could have on the nation's development.
