The Presidency has rejected Oyo State Governor Seyi Makinde’s claim that the Federal Government is withholding more than ₦250 billion in Nigeria LNG dividend proceeds allegedly due to each of Nigeria’s 36 states, describing the allegation as false and inconsistent with the revenue-sharing formula and NLNG’s historical dividend payments.
Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, made the clarification in a statement on Sunday, following remarks by Makinde at the 2027 Budget Stakeholders’ Consultative Engagement in Ibadan.
Makinde had alleged that NLNG paid dividends into the Federation Account but that the Federal Government spent the proceeds rather than distributing the states’ shares. He further claimed that the amount due to each state had been reconciled at more than ₦250 billion and that the release would not take place until after the 2027 general 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.
Responding, the Presidency said the claim should be disregarded, arguing that the mathematics of such a distribution was incompatible with both the Federation Account Allocation Committee formula and the amount NLNG has historically paid to the Federation.
According to Onanuga, a one-off payment of ₦250 billion to each of the 36 states would amount to ₦9 trillion for the states alone, without taking into account the shares of the Federal Government, the Federal Capital Territory and the 774 local government areas.
He said states receive 26.72 per cent of distributable Federation Account revenue under the FAAC formula. On that basis, he argued, the Federation Account would have needed to receive more than ₦33.68 trillion, estimated at about $25 billion, in NLNG dividends in a single declaration for the states’ collective share to amount to ₦9 trillion.
“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the Presidency said.
Onanuga 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.
“Therefore, any claim that a single payout exceeds the company’s entire lifetime distribution to the Federation — and is being withheld — defies basic logic and economic reality,” he said. Pasted text
The Presidency consequently maintained that Makinde’s allegation that the Federal Government was sitting on a ₦250 billion dividend entitlement for each state could not be supported by the dividend figures it cited.
However, the Presidency’s statement did not provide a transaction-by-transaction reconciliation of the particular NLNG dividend proceeds referred to by Makinde or a breakdown showing the specific amounts distributed or outstanding to individual states. Pasted text
The dispute therefore centres not only on the size of NLNG dividend payments but also on Makinde’s assertion that particular proceeds already credited to the Federation Account had been spent instead of shared with the states.
The Presidency also criticised the governor’s public statements, accusing him of making misleading claims since beginning his 2027 presidential campaign.
It urged Nigerians to disregard the allegation, saying it could create unnecessary public disaffection against the Federal Government. Pasted text
Makinde, who is the presidential candidate of the Allied People’s Movement for the 2027 election, had framed the issue around the development needs of the states, saying Oyo State had already identified projects it intended to finance with its expected share of the funds.
The controversy has consequently introduced another fiscal accountability issue into the campaign season, with Makinde questioning whether electoral considerations were delaying funds he says belong to the states while the Presidency insists the amount he cited is mathematically and historically impossible.
Nigeria LNG’s dividend record also requires a distinction between dividends paid to all its shareholders and the portion attributable to the Federal Government. NLNG’s Chief Executive Officer, Adeleye Falade, was reported in July to have said the company had paid about $47.2 billion in dividends to all shareholders since operations began, while the Presidency’s $21.5 billion figure refers specifically to dividends it says accrued to the Federation.
Post Title: “Is The Election More Important Than Nigerians?” — Makinde Questions Alleged Delay Of NLNG Funds, Presidency Says ₦250bn Claim Is False By Naijaonpoint.