Presidency clarifies N573bn fund distribution amid dispute with Seyi Makinde

By Kunle Sanni

The Presidency has addressed the ongoing controversy surrounding the distribution of N573 billion to states, following tensions between state governors and the federal government.

The dispute arose after President Bola Tinubu, in a recent national broadcast, mentioned that the federal government had provided N573 billion in support to states. However, Governor Seyi Makinde of Oyo State disputed this claim, asserting that the funds were not directly from the federal government.

In response, the Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, urged that the focus should not be on the source of the funds but rather on their intended purpose and impact.

Ajayi emphasized that the primary concern should be how the funds are being utilized to support the states and benefit citizens.

“The issue of whether it was a grant or a loan should not be the center of discussion but rather how the money can assist in the country’s development,” Ajayi stated.

He further clarified, “The point, as clearly stated in the President’s broadcast, is that the states received the funds.” Ajayi explained that the amount in question, N573 billion, represents the second tranche under the COVID-19 livelihoods support scheme of the NG-CARES Programme, funded by the World Bank.

Ajayi also highlighted that the World Bank facility is guaranteed by the Federal Government, as all multilateral loans require a sovereign guarantee. He stressed that there should be no controversy among governors if the objective is to serve the people and improve their lives.

“The President is elected to make life better for citizens, just as the governors are elected to do the same in their respective states,” Ajayi added.

According to Ajayi, President Tinubu remains committed to fostering economic growth and ensuring that all Nigerians benefit from shared prosperity. He views the governors as partners in the nation’s progress and nation-building efforts.

“What cannot be denied is that states now have more resources to deliver better services to the people, particularly in critical areas such as education, healthcare, security, and physical infrastructure like roads,” he said.

Ajayi also clarified that the payment was indeed the second tranche, with the first having been disbursed in October or November of the previous year. He cautioned against reducing the issue to mere semantics, emphasizing the substantive nature of the funding.

“The fact remains that the Federal Government provided the funds to the states, and the N573 billion is actually the second tranche. The first tranche was paid sometime in October or November last year,” Ajayi concluded.