Nasarawa State Governor, Abdullahi Sule, clarified on Thursday that the World Bank loan received by states is intended for infrastructural projects and not to alleviate the hardships faced by Nigerians.
Over the past nine months, the Federal Government has disbursed N573 billion to state governors to combat poverty within their jurisdictions. This has prompted concerns from many Nigerians, including human rights lawyer Femi Falana, who have called on states and the Federal Capital Territory (FCT) to account for how these funds have been utilised.
During an appearance on Channels Television’s Politics Today, Governor Sule explained that states received the funds in installments, with the most recent disbursement in June.
“The funds are earmarked for specific projects. It’s a structured loan from the World Bank, not intended for rice, palliatives, or anything of that sort,” he said.
He further clarified that this money originated from the World Bank, with the second disbursement occurring in November last year, and states’ accounts were credited around January.
Nasarawa State received N13.6 billion during the second tranche, which accounts for over 10% of the total amount distributed.
When questioned about the terms of repayment, Governor Sule stated, “The World Bank is providing this loan at zero interest.”
He explained that the loan was designed to support states in response to the COVID-19 pandemic, with the first disbursement occurring before President Buhari left office in May 2023. The third disbursement, made in June, has been confirmed by all states.
In April 2023, the Federal Government disbursed N77 billion to states and the FCT to support the NG-CARES program, aimed at addressing multi-dimensional poverty in the country. Under the Muhammadu Buhari administration, a total of N112 billion was allocated to states and the FCT for poverty alleviation efforts.
Furthermore, in 2023, the Federal Government approved the release of N135.4 billion as reimbursement to states and the FCT for implementing the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) Program.
In July 2024, over N438 billion was released to 34 states and the FCT under the Nigeria Community Action for Resilience and Economic Stimulus program. However, Kaduna and Anambra States were excluded from the latest disbursement due to their failure to present results for verification during the exercise.