Presidency clarifies N573 billion disbursement as World Bank loan, not a Grant

The Presidency has issued a clarification regarding the recent disbursement of N573 billion to Nigerian states, stating that the funds represent a World Bank loan guaranteed by the Federal Government, rather than a grant.

This clarification follows comments made by Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule, who indicated that the funds they received were from a World Bank loan, not direct federal disbursements.

Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, provided the clarification, emphasizing that the key issue is not the nature of the funding—whether it is a loan or a grant—but rather how the funds can be utilized to support the country’s development.

Ajayi characterized the governors’ remarks as a matter of semantics, reiterating that the funds had indeed been disbursed to the states.

“I think the issue is not whether it is a loan or grant. The point, as clearly stated in the President’s broadcast, is that the states got money. 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,” Ajayi explained. “The fact is states are getting needed support and funding to improve the lives of the people.”

Ajayi further clarified that the World Bank facility is guaranteed by the Federal Government, which means that in the event any state is unable to repay the loan, the Federal Government would be responsible for repayment. He urged the governors to focus on the objective of serving the people and improving their lives rather than debating the nature of the funding.

“The President is elected to make life better for citizens the same way the governors are elected to do the same in their respective states. President Tinubu will continue to work to expand the economy and enable shared prosperity for all Nigerians. He considers the governors as partners in progress and the job of nation-building,” Ajayi added.

Oreoluwa Ojelabi

Oreoluwa is an accountant and a brand writer with a flair for journalism.