The Presidency has clarified that the recent N573 billion disbursed to Nigerian states is a World Bank loan guaranteed by the Federal Government, not a grant, as some may have misunderstood.
This clarification follows statements from Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule, who recently mentioned that 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, addressed the issue, emphasizing that the key focus should be on how the funds will aid national development rather than the semantics of the loan versus grant debate. Ajayi described the governors’ comments as a matter of semantics and confirmed that the funds had indeed been distributed to the states.
Ajayi stated: “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. 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.”
He further explained: “The World Bank facility is guaranteed by the Federal Government because every multilateral loan must have a sovereign guarantee. This means the loan will be repaid by the Federal Government in case the sub-nationals are unable to. 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.”
Ajayi added that President Tinubu is committed to expanding the economy and ensuring shared prosperity for all Nigerians, viewing governors as partners in the nation-building process. He emphasized that the states now have more resources to improve services in critical areas such as education, healthcare, security, and infrastructure.
“I think the issue here is one or two governors trying to reduce the matter to semantics,” Ajayi concluded. “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.”
