FG never gave N570 billion to 36 States in Nigeria – Seyi Makinde

Oyo State Governor Seyi Makinde has refuted President Bola Ahmed Tinubu’s claim that the federal government disbursed N570 billion to states. He clarified that this amount represents a credit facility from the World Bank, with the federal government merely acting as an intermediary.

Makinde addressed a concerned citizen’s inquiry about the supposed N570 billion Hardship Fund, clarifying that the information was inaccurate. He explained that the funds were part of the World Bank-assisted NG-CARES project, aimed at aiding states in COVID-19 recovery. The World Bank provided the funds through a “Programme for Results,” requiring states to spend their own money first. The World Bank then reimbursed them via the federal government.

He emphasized that the federal government did not provide any direct funds to Oyo State; rather, it facilitated the reimbursement process for expenditures already incurred. He noted that the World Bank fund is a loan, not a grant, and states are responsible for repaying it.

Makinde further clarified that the NG-CARES initiative, known as Oyo-CARES in his state, predates the current federal administration. He also highlighted that Oyo State had been reimbursed N5.98 billion initially and N822 million subsequently for its investment in the program’s three result areas, including support for smallholder farmers.

In his address on Sunday, President Tinubu had stated that over N570 billion was released to the states for livelihood support and that nano-grants benefited 600,000 small businesses, with an additional 400,000 expected to benefit.