N570bn Hardship Grant: FG Didn’t Give Any State Money – Seyi Makinde
During the nationwide #EndBadGovernance protests against hunger and hardship, President Bola Tinubu addressed Nigerians in a broadcast, revealing that the Federal Government had disbursed ₦570 billion to each of the 36 states as part of a hardship grant aimed at alleviating the economic challenges facing the country. He also mentioned that Nigeria spends ₦2 trillion monthly on importing Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) and that the Federal Government’s total fiscal revenue for the first half of 2024 had reached ₦9.1 trillion, a significant increase compared to the previous administration.
Tinubu stated that the hardship funds were intended to expand livelihood support for citizens across the country. He highlighted that 600,000 nano-businesses had already benefited from the government’s nano-grants, with an additional 400,000 businesses expected to benefit in the near future.
However, Oyo State Governor Seyi Makinde has publicly denied receiving any such funds from the Federal Government. In a newsletter titled “No. 95 | August 2024,” which he personally signed and shared on his X (formerly Twitter) handle, Makinde clarified that the funds in question were not a grant from the Federal Government but rather a reimbursement from the World Bank under the NG-CARES program. He explained that the NG-CARES (COVID-19 Action Recovery Economic Stimulus) initiative was designed to help states recover from the economic impact of COVID-19 and that the funds were part of a Programme for Results intervention.
According to Makinde, the World Bank facilitated this intervention, and states were required to spend their own money upfront to implement the program. The World Bank would then reimburse the states after verifying the amounts spent through a platform provided by the Federal Government. He emphasized that this reimbursement was a loan that states would eventually have to repay, not a grant or direct financial aid from the Federal Government. He further noted that the NG-CARES program predated the current federal administration.
Makinde’s denial has added to the controversy surrounding the protests, which have been marked by both peaceful demonstrations and violent incidents in various parts of the country. In some northern states, the protests escalated into violence, with hoodlums looting goods and facilities. The sight of protesters in the north brandishing the Russian flag has also sparked widespread condemnation, with some describing it as a treasonable offense. The Department of State Services (DSS) has since announced the arrest and investigation of sponsors behind the violent protests, including the detention of seven Polish nationals, and vowed to reveal the identities of those involved in inciting the violence.
