Presidency Rejects Makinde’s Claim of ₦250bn NLNG Dividends for Each State
The Presidency has rejected Oyo State Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends due to each state, describing the allegation as false and inconsistent with the history of dividend payments to the Federation.
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, said in a statement on Sunday that the amount cited by Makinde did not align with the revenue-sharing formula used by the Federation Account Allocation Committee (FAAC) or the historical value of NLNG dividends paid to the Federation.
According to Onanuga, distributing ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory (FCT) and the 774 local government areas.
He explained that states receive 26.72 per cent of distributable revenue from the Federation Account under the FAAC allocation formula.
For the combined share of the states to reach ₦9 trillion, Onanuga argued, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to approximately $25 billion, in a single declaration.
The presidential spokesman maintained that NLNG had never made a dividend payment of that magnitude to the Federation in a single transaction.
He urged Nigerians to disregard Makinde’s allegation that the Federal Government was withholding a substantial NLNG dividend windfall meant for the states.
According to the Presidency, NLNG has paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion reportedly realised since Tinubu assumed office.
Onanuga argued that the amount allegedly being withheld would exceed the company’s entire historical dividend payments to the Federation, describing such a claim as inconsistent with the available figures.
However, the Presidency’s statement did not provide a transaction-by-transaction reconciliation of the specific NLNG dividend proceeds referenced by Makinde or a detailed breakdown of the amounts allegedly due to individual states.
The dispute followed remarks by the Oyo governor at the 2027 Budget Stakeholders’ Consultative Engagement in Ibadan on Friday, where he alleged that the Federal Government had spent NLNG dividend proceeds that should have been distributed to states through the Federation Account.
Makinde claimed that the amounts due to the states had already been reconciled and that each state was expected to receive more than ₦250 billion.
He also alleged that the release of the funds had been postponed until after the 2027 general elections, raising concerns about the timing of the proposed payment and its implications for state development plans.
The governor said Oyo State had already identified projects intended to expand its economy, but the alleged delay in releasing the funds could affect the implementation of those plans.
Questioning the reported postponement, Makinde asked why the electoral calendar should take precedence over the needs of Nigerians.
The competing claims have placed the management of NLNG dividends, revenue allocation and fiscal transparency at the centre of the dispute between the Oyo State governor and the Presidency.
While the Presidency has challenged the plausibility of the ₦250 billion figure using the FAAC revenue-sharing formula and historical dividend payments, a detailed reconciliation of the specific funds in question would help clarify the basis of Makinde’s allegation.