Makinde counters Tinubu, says N570bn to states not from FG

Seyi Makinde, governor of Oyo, says the N570 billion disbursed to states did not come from the federal government. 

In a newsletter, the governor said President Bola Tinubu’s remark that 36 states were given N570 billion to “expand livelihood support to their citizens” is “another case of misrepresentation of facts”.

In a nationwide broadcast on Sunday, Tinubu said the federal government released N570 billion to 36 states to “expand livelihood support to their citizens”.

“In addition, we have introduced the Skill-Up Artisans Programme (SUPA); the Nigerian Youth Academy (NIYA); and the National Youth Talent Export Programme (NATEP),” the president had said.

“Also, more than N570 billion has been released to the 36 states to expand livelihood support to their citizens, while 600,000 nano-businesses have benefitted from our nano-grants.”

After the president’s speech, some Nigerians asked their governors what they used their share of the money for.

In his response, the Oyo governor said the federal government was just a “conduit”.

Makinde said the fund named NG-CARES is not a grant to states but a loan.

“The said funds were part of the World Bank-assisted NG-CARES project — a Programme for Results intervention,” Makinde said.

“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 the 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.”

WHAT IS NG-CARES?

The Nigeria COVID-19 action recovery and economic stimulus, also known as NG-CARES, is an initiative of the World Bank and the federal government.

It was designed to “expand access to livelihood support and food security services, and grants for poor and vulnerable households and firms”.

The $750 million initiative is aimed at supporting the 36 states and the FCT to “mitigate the impact of the Coronavirus (COVID-19) pandemic on the livelihoods of poor and vulnerable households and microenterprises in the country”.

The federal government is the borrowing agency.

States are expected to use the funds for development projects and programmes.

The federal government recently disbursed N438 billion to 34 states and the FCT. The breakdown can be seen here.