Two Governors Refute Tinubu's N570 Billion Disbursement to Combat Hunger, Say It's Not A Grant As States Need to Repay It

By: Abdulwasiu Akintunde 

The Governor of Oyo State, Seyi Makinde and his Nasarawa State colleague, Abdullahi Sule, have disputed President Bola Ahmed Tinubu's assertion that his administration had released more than ₦570 billion to all 36 states to combat hunger.

During a recent national address on Sunday, President Tinubu spoke about the ongoing #EndBadGovernance protests, which have highlighted widespread concerns about hunger and hardship across the country. 

In his speech, Tinubu claimed that his administration had disbursed ₦570 billion to the 36 states to support citizens in need. He mentioned that this funding had benefited 600,000 nano-businesses so far, with an additional 400,000 expected to receive support soon.

OPEN TELEVISION Naija (OTN) News reports that this claim has been seriously challenged by Governors Seyi Makinde and Abudulahi Sule, who provided a different perspective. They clarified that the ₦570 billion was not a direct grant from the Federal Government as Tinubu suggested. Instead, they explained that the funds were part of the World Bank’s NG-CARES project, a program designed to help states recover from the economic impact of COVID-19. 

They emphasized that this money was a loan from the World Bank, not a grant, meaning states would eventually need to repay it.

According to the Governors, the program required states to initially use their own funds for implementation, with the World Bank reimbursing them later through a Federal platform. 

Governor Makinde explained that Oyo State received ₦5.98 billion in the first tranche and ₦822 million in the second tranche under the NG-CARES (Community Action for Resilience and Economic Stimulus) program. 

Governor Makinde, in particular, took to his X handle to address the issue, stating that the NG-CARES program, which was renamed Oyo-CARES in his state, actually began before Tinubu's administration took office.

He expressed concern over the misrepresentation of facts, clarifying that the Federal Government acted merely as a conduit for the reimbursements, rather than providing new funds to the states.

"The money we received was for the investments we made in the three focus areas of NG-CARES, including providing inputs to smallholder farmers in our state. Our approach, which included biometric capturing of beneficiary farmers, was so effective that the World Bank adopted it as the model for NG-CARES," Makinde stated.

Makinde's remarks make him the second PDP Governor to publicly challenge President Tinubu's recent statements. 

Earlier, Bauchi State Governor, Bala Mohammed also criticized Tinubu's speech as lacking substance. 

Additionally, Governor Sule of Nasarawa State clarified on a Channels TV program that the funds were disbursed in stages, with the second tranche released in November 2023 and credited to states between January and February 2024. 

Nasarawa State, for instance, received ₦13.6 billion, over 10% of the total ₦135 billion, which was earmarked for specific projects rather than economic relief.

Governor Sule further explained that the funds were allocated for targeted projects, such as constructing rural roads, drilling boreholes, installing solar power, and providing cash transfers to selected individuals. 

For example, Nasarawa State used the funds to build 227 kilometers of rural roads across its 13 Local Government areas. 

Governor Sule stressed that the money was not intended for economic hardship relief, such as providing rice or other palliatives, but was strictly tied to these specific development projects.

Since the announcement of the disbursement of ₦573 billion, many Nigerians, including prominent human rights lawyer Femi Falana (SAN), have called on State Governments and the Federal Capital Territory (FCT) to clarify how the funds were utilized. 

Falana, who acknowledged that this program, aimed at combating poverty, began under the Muhammadu Buhari administration, which initially disbursed ₦112 billion to states and the FCT. He further noted that the remaining ₦438 billion came from a $750 million World Bank loan that the Nigerian public, represented by their Governors, will eventually have to repay.

Contrary to some claims, a reliable source clarified that the money was not a direct grant from the Federal Government, but rather a World Bank loan disbursed through the Federal system because states cannot independently secure foreign loans. 

The source emphasized that it is misleading to suggest that the Federal Government provided ₦573 billion to alleviate hardships caused by recent reforms, as the disbursements occurred in phases and began before the current administration took office.

OTN News recalls that the NG-CARES program, funded by the World Bank, was launched in 2020-2021 to help mitigate the impact of the COVID-19 pandemic. Its primary goal was to provide livelihood support, food security services, and grants to vulnerable households, smallholder farmers, and businesses, thereby helping those most affected by the pandemic.

To clarify, investigations have shown that the World Bank’s Programme for Results (PforR) required states and the FCT to initially use their own funds to achieve specific outcomes based on agreed protocols. Only after an independent verification of these results were the states reimbursed. 

"It’s misleading to present these reimbursements as free money given by the Federal Government to help alleviate hardship caused by its reforms, Such claims unfairly target the Governors and create unwarranted criticism," a source explained.

"For example, Anambra State chose not to participate in the NG-CARES program because it did not agree with the loan terms, highlighting that this was indeed a loan and not a gift."

However, the source further stressed that no money has been directly disbursed by the President to State Governors for the purpose of addressing hunger. Similarly, Imo State also opted out, uncomfortable with the conditions attached to the loan.