The N573 billion reportedly released to states by President Bola Tinubu, as mentioned in his recent nationwide address, is not new funding from his administration but rather part of a pre-existing World Bank loan aimed at mitigating the impact of the COVID-19 pandemic.
During his broadcast, President Tinubu stated that the funds had been disbursed to all 36 states to support vulnerable citizens and expand livelihood programs. However, checks have revealed that the funds were part of the NG-CARES (Community Action for Resilience and Economic Stimulus) program, initiated during the previous administration under President Muhammadu Buhari.
Human rights advocate Femi Falana (SAN) and others have since called for transparency on how the states and the Federal Capital Territory (FCT) utilized these funds. The N573 billion in question includes an initial N112 billion disbursed by the Buhari administration, with the remaining N438 billion being part of a $750 million World Bank loan that will be repaid by Nigeria.
Contrary to some reports, the funds were not a free grant from the Federal Government but rather reimbursements for funds already spent by the states and FCT on the World Bank-backed NG-CARES program. The initiative, which started in 2020-2021, was designed to support small-scale farmers, businesses, and vulnerable households affected by the pandemic.
Sources have clarified that the funds came from the World Bank, with the Federal Government merely facilitating the disbursement. States were required to meet certain preconditions, invest their own resources, and then be reimbursed after verification.
It was also noted that not all states participated in the program; for example, Anambra State opted out due to the loan conditions, while Imo State was also hesitant.
The program was part of the Federal Government’s broader efforts to alleviate the economic fallout from the COVID-19 pandemic and aimed to lift 100 million Nigerians out of poverty. The clarification is crucial to dispel the misconception that these funds were newly allocated by the Tinubu administration to address recent economic challenges.
