A fresh dispute has erupted between the Presidency and Oyo State Governor Seyi Makinde over allegations that the Federal Government is withholding Nigeria LNG Limited (NLNG) dividend payments meant for states.
The Presidency has dismissed Makinde’s claim that each state was entitled to ₦250 billion from the dividends, insisting that the figures cited by the governor are misleading and inconsistent with NLNG’s historical dividend payments.
However, Makinde has doubled down on his position, demanding an explanation of how the funds paid into the Federation Account were distributed among the various tiers of government.
The controversy began after Makinde alleged at a 2027 budget stakeholders’ engagement in Ibadan that each state was expected to receive ₦250 billion from the NLNG dividend windfall. He further claimed that the Federal Government had indicated the funds would not be released until after the 2027 general elections.
In response, presidential spokesman Bayo Onanuga argued that allocating ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government areas.
He explained that states receive 26.72 per cent of distributable revenue under the Federation Account Allocation Committee (FAAC) revenue-sharing formula.
According to the Presidency, the total NLNG dividends required to generate ₦9 trillion for the states would exceed $25 billion in a single declaration, an amount it said the company had never paid in one transaction.
Onanuga added that NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion received since President Bola Tinubu assumed office.
The presidential spokesman consequently urged Nigerians to disregard Makinde’s allegations, accusing the governor of making misleading statements amid his presidential ambitions.
Makinde demands answers
Rejecting the Presidency’s response, Makinde, through his Special Adviser on Media, Sulaimon Olanrewaju, maintained that the government had failed to address the central issue: how the dividend payments were received and distributed.
The governor’s camp claimed that a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum, with Federal Government support, identified an alleged shortfall of about ₦9 trillion owed to states and local governments.
It further claimed that the Federal Government had accepted the findings of the exercise, adding that the report remained in the custody of both the government and the governors’ forum.
Makinde’s aide questioned how much of the reported $21.5 billion in cumulative dividends had been allocated to states and local governments, and what had happened to the approximately $3 billion reportedly received under the current administration.
The governor’s camp called on the Presidency to publish relevant NLNG dividend receipts, FAAC decisions and official communications showing the amounts received, approved for distribution and paid to the states.
It argued that the Presidency’s reference to NLNG’s cumulative dividend payments over 25 years did not, by itself, resolve questions about specific payments or their distribution.
The Makinde-Daura Campaign Organisation also criticised the Presidency’s response, describing it as an attempt to divert attention from the substantive questions surrounding the alleged withholding of funds.
The dispute has added another dimension to the political exchanges ahead of the 2027 general elections, with both sides maintaining sharply opposing positions.
The central issue remains whether the alleged shortfall exists and whether the relevant financial records support claims that funds due to states and local governments have been withheld.
