Posted by Amarachi on Fri 09th Aug, 2024 - tori.ng
Makinde explained that the ₦570 billion was a loan from World Bank to states and not a grant.
Gov Seyi Makinde
Gov Seyi Makinde of Oyo State has disclosed that states in the country did not receive ₦570 billion from the federal government.
Seyi Makinde said the statement from the Minister of Information, Mohammed Idris, was another misrepresentation of facts.
Makinde explained that the ₦570 billion was a loan from World Bank to states and not a grant. He added that federal government only served as a conduit for the states.
The Oyo State governor’s statement was contained in a newsletter sent to our correspondent by the Governor’s office on Thursday.
“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,” he said.
He further explained that the loan came in two tranches to states. He disclosed that Oyo State got ₦5.98 billion in the first tranch and ₦822 million in the second tranch.
“So, in direct response to the message, the Federal Government did not give Oyo State any money. We were reimbursed funds (₦5.98 billion in the first instance and ₦822 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,” he added.