Presidency Addresses Controversy Over N573 Billion Fund Received by States

The Presidency has responded to the ongoing debate surrounding the N573 billion provided to states, a matter that has sparked considerable tension between state governors and the federal government.

In a recent national broadcast, President Bola Tinubu mentioned that the federal government had disbursed N573 billion to support states amidst the ongoing nationwide hunger protest. However, Governor Seyi Makinde of Oyo State contradicted this claim, asserting that the funds did not originate directly from the federal government.

Amid the controversy, Temitope Ajayi, the Senior Special Assistant to the President on Media and Publicity, emphasized that the focus should not be on whether the funds were a grant or a loan, but rather on how the money could contribute to the country’s development.

Ajayi stated, “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.” He explained that the N573 billion represents the second tranche of funding under the COVID-19 livelihoods support scheme, part of the NG-CARES Programme funded by the World Bank. Ajayi stressed that this World Bank facility, guaranteed by the Federal Government, is intended to support states in improving the lives of their citizens.

He also highlighted that governors should focus on using the funds to serve the people and enhance their well-being, noting that both the President and governors share the responsibility of nation-building and ensuring prosperity for all Nigerians. “The President considers the governors as partners in progress,” Ajayi added.

Ajayi further clarified that the payment was the second tranche, following an initial disbursement in October or November of the previous year. He criticized the ongoing debate as a matter of semantics, emphasizing that the federal government had indeed provided the funds to the states.

Governor Makinde, however, maintained that the President’s statement was a “misrepresentation of facts,” explaining that the funds were part of the World Bank-assisted NG-CARES project. According to Makinde, the program required states to initially spend their own money to implement COVID-19 recovery efforts, with the World Bank later reimbursing the expenses through a federal platform.

Makinde stated, “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.”