Oyo State Governor Seyi Makinde has maintained his claim that the Federal Government is withholding ₦250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends meant for each state, despite the Presidency dismissing the allegation as false.
The governor’s response followed a statement by presidential spokesman Bayo Onanuga on Sunday, in which he rejected claims that the Federal Government was holding back NLNG dividend payments owed to states and local governments.
Speaking at the 2027 Budget Stakeholders’ Consultative Engagement at Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, Makinde alleged that the funds would not be released until after the 2027 elections and claimed the money had already been spent by the Federal Government.
“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.
Makinde, who is also the Allied Peoples Movement (APM) presidential candidate, insisted that the issue required a clear explanation from the Federal Government.
However, Onanuga argued that the figures cited by the governor did not align with the amounts paid into the Federation Account by NLNG.
He explained that ₦250 billion for each of Nigeria’s 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the country’s 774 local government councils.
Under the Federation Account Allocation Committee (FAAC) formula, states receive 26.72 per cent of distributable revenue from the Federation Account.
Onanuga said that for the states’ share alone to reach ₦9 trillion, NLNG would have had to pay more than ₦33.68 trillion, or approximately $25 billion, into the account in a single declaration.
The presidential spokesman maintained that NLNG had never made a dividend payment of $25 billion to the Federation Account in one transaction.
Makinde’s Aide Questions How NLNG Dividends Were Shared
Reacting to the Presidency’s position, Sulaimon Olanrewaju, Makinde’s special adviser on media, said the response failed to address the central issue raised by the governor.
According to Olanrewaju, the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, had engaged a consultant to reconcile NLNG dividend payments.
“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.”
Olanrewaju also noted that Makinde serves as the NGF’s incumbent vice-chairman.
He said the Presidency had acknowledged that NLNG paid $21.5 billion in dividends into the Federation Account since the company began operations, including $3 billion received under the current administration, but had not explained how the funds were distributed.
“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 governor’s aide then raised questions about whether states and local governments had received their shares, how much they had received and the method used to calculate their allocations.
“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?”
Olanrewaju defended Makinde’s statements, saying the governor did not make unsupported allegations or quote figures without a basis.
He added that the governor remained ready to provide further clarification and urged the Presidency to address the substance of the allegations concerning the distribution of NLNG dividends.
