The Presidency has dismissed Oyo State Governor Seyi Makinde’s allegation that the Federal Government is withholding ₦250 billion in Nigeria LNG (NLNG) dividends for each state, while the governor’s camp insists that questions remain unanswered over the distribution of the funds.
A fresh war of words has erupted between the Presidency and Oyo State Governor Seyi Makinde over allegations that the Federal Government is withholding billions of naira in dividends from Nigeria Liquefied Natural Gas Limited (NLNG) that should accrue to states and local governments.
The dispute intensified after the Presidency rejected Makinde’s claim that each of the 36 states was entitled to ₦250 billion from an NLNG dividend windfall allegedly being withheld until after the 2027 general elections.
In a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency described the governor’s allegation as false, arguing that the figures cited did not align with the known history of NLNG dividend payments to the Federation Account.
According to the Presidency, distributing ₦250 billion to each of the 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory (FCT) and the 774 local government areas.
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It argued that, under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue. Consequently, for the states’ share alone to reach ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, which the statement estimated at approximately $25 billion in a single declaration.
The Presidency maintained that NLNG had never paid $25 billion in dividends to the Federation Account in a single payout.
It further stated that the company had paid approximately $21.5 billion in dividends to the federation over the past 25 years, with less than $3 billion realized since President Bola Tinubu assumed office.
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Onanuga consequently urged Nigerians to disregard Makinde’s allegation, arguing that the claim that a single payout exceeded the company’s entire lifetime dividend distribution to the federation was inconsistent with economic reality.
The Presidency also criticized the governor’s public statements, accusing him of making misleading claims since embarking on his presidential ambition.
Makinde Demands Explanation Over Alleged ₦9 Trillion Shortfall
Makinde, however, has rejected the Presidency’s response, insisting that the central issue is not merely the total amount NLNG has paid in dividends over the years, but how the funds were accounted for and distributed among the beneficiaries.
In a statement signed by his Special Adviser on Media, Dr Sulaimon Olanrewaju, the governor accused the Presidency of sidestepping the substance of the allegation.
According to the statement, a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the support of the Federal Government, allegedly identified a shortfall of about ₦9 trillion owed to states and local governments.
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Makinde’s camp further claimed that the Federal Government had accepted the findings of the exercise and that the report remained in the custody of both the government and the NGF.
The governor’s aide questioned the Presidency’s reference to the approximately $21.5 billion in cumulative NLNG dividend payments, arguing that the figures did not establish whether the appropriate amounts had been distributed to states and local governments.
He asked how much had been received by the various tiers of government, how the amounts were calculated and what had happened to the approximately $3 billion in dividends reportedly received under the Tinubu administration.
Makinde’s camp maintained that these questions were central to resolving the dispute and called on the Federal Government to provide detailed information on the receipts and distribution of the funds.
Campaign Organisation Accuses Presidency of Avoiding the Issue
The Makinde-Daura Presidential Campaign Organisation (MDPCO) also dismissed the Presidency’s denial, accusing the administration of diverting attention from the substantive questions surrounding the alleged withholding of the dividends.
In a statement signed by its Director of Communications, Richard Nnanna Ihediwa, the campaign challenged President Tinubu to state clearly whether the dividends in question had been paid to the states.
The organization argued that citing NLNG’s cumulative dividend payments over 25 years did not resolve questions about the amounts received during the specific period under discussion, the sums approved for distribution and whether any payments had been delayed or withheld.
It called on the Presidency to publish relevant NLNG dividend receipts, FAAC decisions and official communications showing the amounts received, the sums approved for distribution and the timing of payments to the states.
The campaign also questioned whether the Federal Government had the constitutional authority to withhold funds accruing to states in the federation.
Describing demands for accountability as a civic right, the organization insisted that Makinde’s presidential ambition did not prevent him from questioning the management of public funds.
The campaign further defended the governor against allegations of misinformation, describing his position as an attempt to obtain answers on the distribution of public revenue.
Dispute Raises Questions Over Public Financial Accountability
At the heart of the disagreement are two competing positions: the Presidency’s argument that the alleged ₦250 billion allocation per state is inconsistent with NLNG’s historical dividend payments, and Makinde’s insistence that the distribution of funds and the alleged ₦9 trillion shortfall require a detailed explanation.
While the Presidency has relied on aggregate dividend figures and the revenue-sharing formula to challenge the governor’s claim, Makinde’s camp maintains that only the relevant financial records can establish how much was received, approved for distribution and ultimately credited to the states and local governments.
The dispute has therefore shifted attention to the reconciliation report reportedly commissioned by the NGF and the financial records that could clarify the transactions in question.
However, the claims made by the governor’s camp concerning the alleged shortfall and the Federal Government’s acceptance of the reconciliation findings have not been independently established in the information available in the statements cited.
As both sides continue to trade accusations, the publication of the relevant financial records and a detailed account of the dividend receipts and allocations would be central to resolving the disagreement.
For now, the Presidency insists that Makinde’s allegation is false, while the governor and his campaign organization maintain that the government must answer questions about the distribution of NLNG dividends.
The controversy adds another dimension to the political exchanges ahead of the 2027 general elections, with public accountability and the management of federation revenue emerging as key issues in the dispute.
