In line with earlier explanation by his Oyo counterpart, Seyi Makinde, Abia governor, Alex Otti has cleared the air on the N570 billion the Federal Government claimed it disbursed to states as part of measures so far taken to cushion the effects of the economic hardship following the fuel subsidy removal.
By Emma Ogbuehi
In line with earlier explanation by his Oyo counterpart, Seyi Makinde, Abia governor, Alex Otti has cleared the air on the N570 billion the Federal Government claimed it disbursed to states as part of measures so far taken to cushion the effects of the economic hardship following the fuel subsidy removal.
Otti who was reacting to questions during a media parley at the Government House Friday night, said the fund was actually not Federal Government’s money but a lone from World Bank channeled through the federal government.
According to the Governor, it is a misrepresentation of facts to say, that the federal government disbursed N570 billion to states.
He said:” The N570 is not a free gift; it’s actually a loan. There is something called performance for results under the NG Cares programme which has to do with COVID-19. Monies were first disbursed by state governments.
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“So, the N570 billion speaks to wave three of the NG Cares. Before our adminisitration, there were Waves one and two, and Wave four is just starting.
“How it works is that you are expected to disburse funds under Conditional Cash Transfer, FADAMA, and others. When you disburse it, the World Bank will check your records, and confirm that you indeed, did those disbursements, and thereafter, a reimbursement is made through the federal government.
“So, the money does not belong to the federal government. The federal government is just a vehicle through which disbursement happens. Anyone who is creating the impression that the federal government disbursed N570 billion to the states, that person is misrepresenting the facts.
“What I have told you is the fact. So, if we got any money, it’s because we have performed well and the World Bank has certified that we performed. It’s a loan and you have to move first before the World Bank reimburses you”, Otti clarified.
Governor Makinde had earlier indicated that Oyo was not part of the ₦570bn hardship grant claimed to have been given to the state governments by the Federal Government.
President Bola Tinubu while addressing Nigerians in a broadcast during the #EndBadGovernance nationwide protests against hunger and hardship, said the government has disbursed ₦570bn to the 36 states.
Tunubu also said that Nigeria spends ₦2tn monthly to import Premium Motor Spirit, popularly called petrol, and Automotive Gas Oil, otherwise known as diesel.
He disclosed that ₦9.1tn was accumulated as total fiscal revenue to the Federal Government’s coffers during the first half of 2024, marking a significant increase from what was earned by the previous administration.
“Also, more than ₦570bn has been released to the 36 states to expand livelihood support to their citizens, while 600,000 nano-businesses have benefitted from our nano-grants. An additional 400,000 more nan0-businesses are expected to benefit,” the President stated.
However, in a newsletter No 95 |August 2024 personally signed by the governor and shared on his X handle, he said the state was not in the know of such a grant.
