Nigeria’s seat of power, the Presidency has finally made it clear that the N573 billion fund said to have been given to states was after all a loan and not a grant
speaking on the controversy surrounding the N573 billion released to states, the Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, pointed out that the money is a World Bank loan guaranteed by the Federal Government.
Ajayi however called on all to focus on how the money can assist in the country’s development, rather than whether it is a loan or grant.
According to him, “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.
“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.
Ajayi’s statement came in response to claims made by some governors, including Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule, who denied receiving any money from the Federal Government, except for the World Bank loan in their reactions to the speech by President Bola Tinubu in his recent broadcast, stating that states were given N570 Billion.
