The Presidency cleared the air yesterday on the controversy over the N573 billion received by states.
![](https://thenigerialawyer.com/wp-content/uploads/2026/01/SADR.jpeg")
It said the fund is a World Bank loan, which the Federal Government guaranteed, and not a grant.
It explained that the issue of whether it was a grant or a loan should not be at the centre of discussion but rather how the money can assist in the country’s development.
The clarification was made through a Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi.
He said: “I think the issue is not whether it is a loan or grant.
“The point, as clearly stated in the President’s broadcast, is that the states got money.
“The amount, which is the second tranche under the COVID-19 livelihoods support scheme under the NG-CARES Programme funded by the World Bank, is N570 billion.
“The fact is states are getting needed support and funding to improve the lives of the people.
“The World Bank facility is guaranteed by the Federal Government because every multilateral loan must have a sovereign guarantee.
“This means the loan will be repaid by the Federal Government in case the sub-nationals are unable to.
“There should be no hue and cry by any governor really if the objective is to serve the people and make life better for the masses.
“The President is elected to make life better for citizens the same way the governors are elected to do the same in their respective states.
“President Tinubu will continue to work to expand the economy and enable shared prosperity for all Nigerians.
“He considers the governors as partners in progress and the job of nation-building.
“What can’t be denied is that the states have more resources to deliver better service to the people, especially in critical areas of education, healthcare, security and physical infrastructure like roads among others.”
Ajayi described the issue as more than just semantics, explaining that the payment was the second tranche, with the first paid in October or November last year.
“I think the issue here is one or two governors trying to reduce the matter to semantics. It is much more than that.
“The fact remains that the Federal Government paid the states the money and the N573 billion is actually the second tranche.
“The first tranche was paid sometime in October or November last year,” he said.
Oyo State Governor Seyi Makinde and Niger State Governor Abdullahi Sule said at the weekend that they did not collect any money from the Federal Government, except the World Bank loan.
Makinde had said: “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 states, 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.”
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