573 billion naira payment to states is a loan not a grant – FG

TVC NEWS

The Presidency has addressed the controversy surrounding the ₦573 billion payment to state governments, clarifying that it is a loan from the World Bank, not a grant.

Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, explained that the loan is part of the Covid-19 livelihoods support scheme under the NG-CARES Programme funded by the World Bank.

Ajayi’s clarification comes after some governors denied receiving federal government’s grant, sparking controversy over the payment.

Ajayi emphasised that the federal government guarantees the loan, which means it will be responsible for repayment if the states are unable to pay.

The Presidency’s statement comes after some governors denied receiving a grant from the federal government, sparking a debate over the nature of the payment.

Ajayi stressed that the focus should be on the positive impact of the funding on the lives of citizens, rather than the semantics of whether it is a loan or grant.