Oyo State Governor Seyi Makinde, on Friday, claimed that the state benefitted from a ₦570 billion “Hardship Fund” allegedly distributed to the 36 states by the Federal Government.
The governor clarified that these funds were not a direct grant from the Federal Government but part of the World Bank’s NG-CARES project, a loan-based initiative aimed at COVID-19 recovery.
During his recent national broadcast, President Tinubu stated that the Federal Government had released over ₦570 billion to the states to help expand livelihood support for citizens.
He also mentioned that 600,000 nano-businesses had benefited from nano-grants, with an additional 400,000 expected to benefit.
Tinubu’s claims were made in the context of addressing the #EndBadGovernance protests that erupted across the country.
The protests, which initially focused on hunger and economic hardship, sparked significant controversy and violence.
Governor Makinde began his response by acknowledging the anxieties and difficulties faced by Nigerians due to rising food inflation and economic hardship.
He emphasised the need to address these challenges through effective governance and transparency.
In his detailed explanation, Makinde stated that the ₦570 billion mentioned by President Tinubu was not a direct allocation but a reimbursement for expenses incurred by the states under the World Bank’s NG-CARES project.
This initiative, officially known as the COVID-19 Action Recovery Economic Stimulus (CARES), required states to spend their own funds first on COVID-19 recovery efforts. The World Bank then reimbursed these expenditures through a federal platform, rather than providing the money directly.
Makinde further explained that the funds were a loan to the states, not a grant, meaning they would need to be repaid.
The NG-CARES project, which Oyo State refers to as Oyo-CARES, was initiated before the current federal administration and aims to support states in their economic recovery efforts by reimbursing verified expenses.
The NG-CARES project was designed to assist states in addressing the economic impact of the COVID-19 pandemic.
Under this program, states had to use their resources upfront for COVID-19 response and recovery.
The World Bank then reimbursed the states after verifying the expenditures
Governor Makinde highlighted that Oyo State received ₦5.98 billion in the first instance and an additional ₦822 million subsequently.
According to him, these funds were used for various COVID-19 recovery programs, including distributing agricultural inputs to smallholder farmers.
The state’s approach to these distributions, which involved biometric capturing of beneficiaries, was recognized by the World Bank and adopted as a model for other states.
Makinde emphasised Oyo State’s commitment to transparency, especially in managing donor-funded projects.
Governor Makinde acknowledged that Oyo State alone cannot solve Nigeria’s economic problems but can serve as a model of productivity and resilience.
His administration has focused on substantial investments in agriculture and other key sectors to build a sustainable economy.
