Gov. Makinde Counters Nigerian Government’s Claim On ₦570bn Hardship Funds, Clarifies It’s Repayable World Bank Loan, Not  Grant

Oyo state governor, Seyi Makinde has said that contrary to the claim by President Tinubu’s led federal government that the sum of 570 billion naira was released to the 36 state governors and the FCT as a grant to cushion the effects of economic hardship in the country, the said money was a World Bank interest-free loan repayable over time.

Makinde disclosed this in Newsletter No. 95 during the week to set the record straight for the public.

Makinde, who noted that the recent protests across the country against food inflation and general hardship reflect the broader issues Nigeria currently faces, emphasised that the action by Nigerians has again, brought forward the need to focus on a reshaping approach to overcoming economic challenges bedevilling the nation.

The governor equally disclosed that the position of the federal government on the said funds was a case of misrepresentation of facts.

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

He explained further that the Federal Government did not give Oyo State any money and that Oyo State merely received reimbursed funds to the tune of N5.98 billion in the first instance and N822 million in the second instance.

Makinde added that the received funds were invested in the three result areas of NG-CARES, which include input distribution to smallholder farmers within the state, noting that when the World Bank saw the Oyo state model for the distribution of inputs, which was preceded by biometric capture of beneficiary farmers, the world financial body adopted it as the NG-CARES model.

According to him, “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 curious 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 for 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 state 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 state, not a grant. So, we 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 have 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 include input distribution to smallholder farmers within our state. When the World Bank saw our model for the distribution of inputs preceded by biometric capture of beneficiary farmers, they adopted it as the NG-CARES model.

“Oyo State has always led in ensuring transparency in any donor-facilitated interventions. This is why we are always picked as one of the subnational beneficiaries. We are exhibiting the same level of transparency in another World Bank-facilitated project, the Livestock Productivity and Resilience Support (L-PRES) Project. I spoke about this in my last newsletter.

This project is designed to create a resilient livestock landscape, leveraging our comparative advantage in dairy, goat, and sheep farming, poultry, and piggery. You may follow this link to register as a livestock farmer in Oyo State. I will speak more about this project at the official flag-off.

“We continue to embrace every opportunity to break from the norm as we implement projects and policies in the agriculture sector, which we have identified since 2019 as one of the focal areas in building a sustainable economy. Agriculture as a business requires substantial investment. While we continue to invest in and support our smallholder farmers, we know we cannot rely solely on them to ensure food security; we need to think bigger.

“We also acknowledge that Oyo State alone cannot bring Nigeria out of its economic difficulties. What we can do is provide a model for others to follow.

“As I take a brief pause from my usual duties for four weeks, I am confident that the structures we have put in place will continue to drive our state forward. Thank you for your unwavering support and understanding. Together, we can create a model of productivity and resilience that can inspire the entire nation.”