Nasarawa State Governor Abdullahi Sule has clarified that the World Bank loan received by states is intended solely for infrastructural projects and not for alleviating economic hardship.
In recent months, the Federal Government has disbursed N573 billion to state governors to combat poverty. This allocation has drawn scrutiny from various quarters, including human rights lawyer Femi Falana, who has called on states and the Federal Capital Territory (FCT) to account for how the funds were used.
Governor Sule addressed these concerns, stating that the World Bank funds are earmarked for specific projects rather than for direct aid or palliatives. “The money is tied to certain projects. It is almost like a regimented loan from the World Bank. The money is not for rice, it is not for palliatives, it is not for anything in that line,” he said.
He further explained that the funds were distributed in stages, with the latest tranche received in June. “That money came from the World Bank and that was the second disbursement which came in November last year. The account amount was credited to the account of every other state, sometimes around January,” Sule noted.
Nasarawa State received N13.6 billion from the second disbursement, which represented over 10 percent of the total amount distributed to the states. Regarding the repayment terms, Sule stated, “The World Bank is actually doing it at no interest. The reason is because it was coming to support states because of the COVID-19 pandemic. It actually started around the year 2020.”
He added, “The first disbursement was done even before Mr. President actually came in May 2023. The third disbursement was the one done in June that was advertised. Every state has been credited and no state is denying it.”
In April 2023, the Federal Government allocated N77 billion to states and the FCT for the NG-CARES programme aimed at tackling multidimensional poverty. The Muhammadu Buhari administration had previously disbursed N112 billion to support poverty alleviation efforts.
In 2023, the government also approved N135.4 billion as reimbursement to states and the FCT for the Nigeria COVID-19 Action Recovery and Economic Stimulus (NG CARES) Programme. Most recently, in July 2024, the Federal Government released over N438 billion to 34 states and the FCT under the Nigeria Community Action for Resilience and Economic Stimulus (NG CARES) programme. Notably, Kaduna and Anambra States were excluded from this latest disbursement due to their failure to present results for verification.
