President Bola Tinubu’s announcement that the Federal Government will distribute a ₦573 billion hardship grant to state governments has stirred up much debate. Despite the claim made during a national broadcast that the funds were given to help ease economic difficulties, states like Oyo, Nasarawa, Abia, and Osun have refuted receiving any money, casting doubt on the truthfulness of the Federal Government’s declaration. Governor Seyi Makinde of Oyo State was swift to question the statement made by the Federal Government.
In his newsletter shared on his X Social Media platform, Makinde clarified that Oyo State did not receive any relief funds from the Federal Government. He detailed that the mentioned funds were actually allocated as part of the NG-CARES project, which the World Bank supports to aid in COVID-19 recovery efforts. Makinde stressed that the money in question was simply a reimbursement. The funds totalling ₦5.98 billion and ₦822 million were not federal grants but money the state had previously utilised for the NG-CARES project, also known as Oyo-CARES.
Governments should take action to improve the transparency of funds.
He made it clear that these funds were designated for COVID-19 recovery initiatives and were allocated before the current administration took office. An insider from the Osun State administration supported the assertions made by several other states by stating that Osun had not been granted any relief funds from the Federal Government. This declaration falls in line with similar statements from other state officials, casting doubt on the Federal Government’s assertion and prompting concerns about the legitimacy of the reported distribution.
Nasarawa State Governor, Abdullahi Sule, also disputed the Federal Government’s account. During a discussion on Channels Television, Sule emphasised that the financial assistance provided to states was, in fact, loans sourced from the World Bank and designated for Infrastructure development rather than alleviation of hardship. He detailed that the funds were distributed in batches, with the latest portion being delivered in June. Sule emphasised that the funds initiated in 2020 were not intended for short-term relief efforts such as distributing rice. He clarified that it was important to differentiate between a free grant and a strategic Investment tied to long-term growth.
Infrastructure development is the fund goal, not hunger.
Similarly, Mr. Mike Akpara, the Finance Commissioner of Abia State, raised doubts regarding the accuracy of the Federal Government’s statement. He emphasised the need for increased transparency and requested clarification on the specific funds designated for each state. Akpara posed inquiries about whether the reported ₦573 billion encompassed additional aid like rice distributions or other forms of relief or if it was merely a distortion of the World Bank loans. The observation was made that each state typically handles Loan applications and processing independently, which raises more scepticism about the possibility of receiving a collective grant from the Federal Government.
The public outcry surrounding the issue has garnered widespread interest, prompting numerous Nigerians, such as renowned Human Rights advocate Femi Falana, to call for transparency. As the leader of the Alliance on Surviving COVID-19 and Beyond (ASCAB), Falana has urged state governments and the Federal Capital Territory (FCT) to disclose a comprehensive breakdown of the alleged ₦573 billion expenditure. The Federal Government’s claims are being met with doubt across the board as more and more people call for a clear and open handling of public funds.
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Lastly, the ongoing debate surrounding the reported distribution of the funds to state governments underscores the importance of openness and precision in governmental messaging. Given that several states are refuting the claim that they have received these funds, it is crucial for the Federal Government to offer a transparent and factually correct explanation of the matter. The need for precise reporting and responsibility is highlighted in this disagreement, especially when dealing with public funds in times of financial struggle.