State Govs Didn’t Receive Any ₦570bn Hardship Grant From FG – Makinde

The executive Governor of Oyo State, Seyi Makinde, has refuted claims of his involvement in the ₦570 billion hardship grant purportedly allocated to state governments by the Federal Government.

In a recent address to the nation, President Bola Tinubu stated that the government has distributed ₦570 billion to all 36 states in response to the #EndBadGovernance protests, which highlighted issues of hunger and economic difficulties.

Additionally, Tinubu noted that Nigeria incurs a monthly expenditure of ₦2 trillion on the importation of Premium Motor Spirit, commonly known as petrol, and Automotive Gas Oil, referred to as diesel.

He also revealed that the Federal Government’s total fiscal revenue reached ₦9.1 trillion in the first half of 2024, representing a notable increase compared to the earnings of the previous administration.

“Also, more than ₦570bn has been released to the 36 states to expand livelihood support to their citizens, while 600,000 nano-businesses have benefitted from our nano-grants. An additional 400,000 more nan0-businesses are expected to benefit,” the President stated.

However, in a statement personally signed by Makinde and shared on his X handle on Thursday, the Oyo State Governor said his state was not in the know of such a grant.

He said, “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.

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“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.”

Makinde’s assertion follows the controversies surrounding the nationwide protests against hunger and hardship.

While the demonstrations were reported to be largely peaceful in many regions, they escalated into violence in certain northern areas, where individuals engaged in looting government and private properties.

Additionally, some protesters in the north were observed displaying the Russian flag, an act that has drawn widespread condemnation and has been labeled a treasonous offense.

In response, the Department of State Services (DSS) has declared the arrest and investigation of those funding the violent protests, which includes the apprehension of seven Polish nationals.

The DSS has also committed to revealing the identities of those responsible for inciting the violent demonstrations.