The Federal Government and Governor Seyi Makinde of Oyo State have disagreed over an alleged withholding of ₦250 billion in Nigeria LNG Limited (NLNG) dividends meant for each state, with both sides trading accusations over the management and distribution of the funds.
While the Presidency has dismissed Makinde’s claim as false, arguing that the figures do not align with NLNG’s historical dividend payments, the governor has challenged the Federal Government to account for the funds, insisting that a reconciliation exercise identified about ₦9 trillion allegedly due to states and local governments.
The controversy followed Makinde’s remarks at the 2027 Budget Stakeholders’ Consultative Engagement held at the International Conference Centre, University of Ibadan, on Friday, where he alleged that the Federal Government had postponed the release of the funds until after the 2027 general election.
“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?” the governor said.
In a statement issued on Sunday, President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, described the allegation as false and urged Nigerians to disregard it.
Onanuga argued that a one-off payment of ₦250 billion to each of the 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government councils.
He explained that under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue. According to him, the states’ share alone would require NLNG dividend payments exceeding ₦33.68 trillion, or approximately $25 billion, in a single declaration to reach ₦9 trillion.
The presidential aide further stated that NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since Tinubu assumed office. He maintained that the company had never paid $25 billion in dividends in a single payout.
Onanuga also accused Makinde of making misleading claims for political purposes, recalling that the governor had previously described the substantial financial allocations received by states from the Federation Account as “voodoo”.
Explain N9trn NLNG dividends shortfall to states —Makinde to Fg
However, Makinde, through his Special Adviser on Media, Dr Sulaimon Olanrewaju, rejected the Presidency’s response, insisting that it failed to address the central issue of how NLNG dividends paid into the Federation Account were distributed among the beneficiaries.
The governor’s aide said a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the support of the Federal Government, had identified an alleged shortfall of about ₦9 trillion owed to states and local governments.
He added that the report remained in the custody of both the Federal Government and the NGF, expressing confidence thatthe Presidency would not deny its existence. Olanrewaju also questioned how the dividends received over the years, including the amount realised under the current administration, had been shared.
“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?” he asked.
The Makinde-Daura Presidential Campaign Organisation also dismissed the Presidency’s position, accusing it of avoiding the substantive questions raised by the governor and demanding the publication of relevant financial records.
In a statement signed by its Director of Communications, Richard Nnanna Ihediwa, the campaign organisation challenged the Federal Government to disclose NLNG dividend receipts, FAAC decisions and official communications showing the amounts received, approved for distribution and paid to states.
The organisation argued that NLNG’s cumulative dividend payments over 25 years could not, on their own, establish whether a specific amount had been received, approved for distribution or withheld during a particular period.
“The question is not whether N9 trillion was ever paid as a single dividend, but the amount that is actually under discussion as can be established by the official records,” the campaign organisation stated.
It further questioned whether the Presidency had the constitutional authority to withhold funds accruing to states and maintained that the governor’s demand for accountability should not be dismissed on the basis of his presidential ambition.
The Presidency has maintained that Makinde’s figures are inconsistent with the company’s historical dividend payments, while the governor’s camp insists that the government must account for the distribution of the funds.
The dispute remains centred on the amount of NLNG dividends received during the period in question, the sums approved for distribution and whether any money due to states and local governments remains unpaid. The financial records requested by Makinde’s camp would be necessary to establish the details of the alleged shortfall and resolve the competing claims.
The post Makinde, FG Bicker Over N250bn NLNG Dividend Windfall appeared first on OsunDefender.
