THE NATION
The Presidency cleared the air yesterday on the controversy over the N573 billion received by states.
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.
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