By Barnabas Augustine
Oyo State Governor, Seyi Makinde, has categorically denied receiving a substantial sum from the federal government as a so-called ‘hardship grant’.
The governor's rebuttal comes in response to President Bola Tinubu's recent announcement of a ₦570 billion disbursement to all states to alleviate the nation’s economic woes.
Makinde, in a personal statement, clarified that the funds Oyo State received were part of a World Bank-backed initiative, not a direct gift from the federal government. The governor emphasised that the money was actually a loan, not a grant, and was used for specific agricultural projects under the NG-CARES programme.
The governor accused the federal government of misrepresenting the facts and insisted that Oyo State played a pioneering role in the implementation of the World Bank project.
Makinde's statement has ignited a fresh row between the federal and Oyo state governments over the management of public funds and the nature of the financial support provided to states amid the nation's economic challenges.
Part of the letter read:
“In my newsletter tonight, I responded to a question from a concerned citizen of Oyo State regarding the claim that the Federal Government ‘gave’ States over N570 billion as some kind of ‘hardship fund’ for citizens.
“Before I speak more on further actions we have taken to show our commitment to productivity and sustainability, let me respond to a long message I received earlier in the week from a concerned citizen. The message was about a purported N570 billion Hardship Fund “given” to the 36 States by the Federal Government. I was queried about what I used the money for.
“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.
“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. 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.”