More states have refuted President Tinubu’s claim of a N573bn hardship fund, clarifying it’s a World Bank loan, not a grant.
The controversy surrounding the purported disbursement of N573 billion to subnational governments announced by President Bola Tinubu during a nationwide broadcast on Sunday, continued on Friday, as more States denied receiving such fund from his administration.
Just like the Governor of Nasarawa State, Abdullahi Sule, on Thursday, faulted the claim by the President, Governor of Oyo State, Seyi Makinde, yesterday, also denied receiving the N573 billion hardship grant claimed to have been given to the state governments by the federal government.
Abia and Osun State governments also indicated that they were yet to receive such funds, maintaining that the World Bank intervention was a loan to States and not a grant from the Nigerian government. Other states contacted also declined to comment, in an apparent move not to be seen as being in conflict with the President.
Tinubu had while addressing Nigerians in a broadcast during the #EndBadGovernance nationwide protests against hunger and hardship, said the government had disbursed N573 billion to the 36 states.
However, in a newsletter No 95 |August 2024 personally signed by Makinde, which was shared on his X handle, he said the state was not in the know of such a grant.
Makinde explained: “In my newsletter tonight, I responded to a question from a concerned citizen of Oyo State regarding the claim that the Federal Government ‘gave’ States over N570 billion as some kind of ‘hardship fund’ for citizens.
“Before I speak more on further actions we have taken to show our commitment to productivity and sustainability, let me respond to a long message I received earlier in the week from a concerned citizen. The message was about a purported N570 billion Hardship Fund “given” to the 36 States by the Federal Government. I was queried about what I used the money for.
“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 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.
“It is important to note that the World Bank fund is a loan to States, not a grant. So, States will need to repay this loan. Note also that NG-CARES, which we christened Oyo-CARES in our State, predates the present federal administration.
“So, in direct response to the message, the Federal Government did not give Oyo State any money. We were reimbursed funds (N5.98 billion in the first instance and N822 million in the second instance) we invested in the three result areas of NG-CARES, which includes inputs distribution to smallholder farmers within our State. 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’s denial comes on the heels of controversies that greeted the nationwide hunger and hardship protests.
Also, Abia State Commissioner for Finance, Mr. Mike Akpara, in response to THISDAY’s enquiry, said the federal government’s comment about the purported grant “is vague”.
“They should come out clear and state categorically what they gave each state,” he said, adding that when that is done, governors could be held accountable on how they spent the money.
Akpara, expressed doubt if the federal government was sure of its claims on the disbursement of the said grant to states and wondered if the amount was calculated based on the rice it distributed to states or other forms of palliatives.
According to him, loans are applied for, negotiated and processed on individual basis and any state that needed loan would pursue it without recourse to other states as a group.
Also, responding to THISDAY’s enquiries, a source from Osun State government that pleaded to remain anonymous, said the N573 billion hardship grant claimed to have been given to the state governments by the federal government was not the truth.
Governor Sule had in an interview with Channels Television, stressed that the World Bank loan received by states was for infrastructural projects and not to cushion the effects of hardship faced by Nigerians.
The governor had explained that states received the money in batches with the latest received in June, stressing that it was a loan and not free funds and was initiated in 2020.
“The money is tied to certain projects. It is almost like a regimented loan from the World Bank. The money is not for rice, it is not for palliatives, it is not for anything in that line.
“That money came from the World Bank and that was the second disbursement which came in November last year. The amount was credited to the account of every other state, sometime around January.”
Many Nigerians, including a senior lawyer, Mr. Femi Falana, a human rights crusader and the Chair, of Alliance on Surviving Covid-19 and Beyond (ASCAB), had since the announcement by the President been challenging states and the Federal Capital Territory (FCT) to explain how they spent the N573 billion.
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