Oyo State Governor Seyi Makinde has reaffirmed his claim that the Federal Government is withholding about ₦9 trillion in Nigeria LNG Limited (NLNG) dividend payments due to state and local governments, challenging the Presidency to explain how the funds have been distributed.
The governor’s position follows a denial by the Presidency, which described his allegation that the Federal Government was withholding NLNG dividend proceeds as “false”.
In a statement signed by his Special Adviser on Media, Sulaimon Olanrewaju, Makinde said the Presidency had failed to address the central issue: a reconciliation exercise commissioned by the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, that allegedly identified a shortfall of about ₦9 trillion owed to states and local governments.
“The response sidestepped the central issue: the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, engaged a consultant to reconcile NLNG dividend payments.
“The exercise identified a shortfall of about ₦9 trillion due to states and local governments. The Federal Government accepted the findings.
“The report remains in the custody of both the Federal Government and the NGF. We trust the Presidency will not deny its existence,” the statement said.
Makinde, who is the NGF’s incumbent vice-chairman, had earlier alleged that each state was supposed to receive ₦250 billion from the dividend proceeds. Speaking at the 2027 Budget Stakeholders’ Consultative Engagement at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, he claimed the funds would not be released until after the 2027 elections.
“Each state was supposed to get ₦250 billion. We had already identified projects that would expand Oyo State’s economy. But they have now said the money will not be paid until after the election. Is the election more important than the people of Nigeria?” Makinde said.
He also alleged that the Federal Government had spent the money.
Presidency Disputes Makinde’s Figures
Presidential spokesman Bayo Onanuga had rejected the governor’s allegation in a statement on Sunday, arguing that the figures did not align with the established revenue-sharing framework.
“Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded,” Onanuga said.
He explained that distributing ₦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 councils.
According to Onanuga, states receive 26.72% of distributable revenue from the Federation Account under the Federation Account Allocation Committee (FAAC) formula.
For the states’ share alone to reach ₦9 trillion, he said, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to about $25 billion, in a single declaration.
“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the Presidency said.
Onanuga also stated that NLNG had paid $21.5 billion in dividends into the Federation Account since the company’s inception, including $3 billion received under the current administration.
Makinde Demands Details of Dividend Disbursements
In his response, Makinde’s camp questioned how the dividends paid into the Federation Account had been distributed and demanded details of the amounts received by state and local governments.
“The Presidency stated that NLNG had paid $21.5 billion in dividends into the Federation Account since inception, including $3 billion received under the current administration. But it did not explain how these funds were disbursed,” the statement said.
It added: “Have states and local governments received their shares? How much did they receive, and how were those amounts calculated? What happened to the $3 billion received under this administration?”
The governor’s camp maintained that his statements were based on the reconciliation exercise and challenged the Presidency to address the alleged shortfall and disclose the findings of the report.
“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis.
“We remain ready to provide further clarification while we urge the Presidency to address the substance of the matter,” the statement added.
The dispute centres on the amount of NLNG dividends paid into the Federation Account, the distribution of those proceeds among the three tiers of government and the alleged ₦9 trillion shortfall identified by the reconciliation exercise.
