The Presidency and Oyo State Governor Seyi Makinde have disagreed over allegations that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends meant for each state of the federation.
The dispute intensified after the Presidency dismissed Makinde’s claim as false, arguing that the figures cited were inconsistent with the company’s historical dividend payments. However, the governor and his campaign organisation have maintained that the government must explain how NLNG dividends were received and distributed.
Makinde, who is also the presidential candidate of the Allied Peoples Movement (APM), had alleged that the Federal Government was delaying the release of the funds until after the 2027 general elections.
Presidency Rejects Makinde’s ₦250bn Dividend Claim
In a statement issued on Sunday, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, described Makinde’s allegation as misleading and urged Nigerians to disregard it.
According to the Presidency, distributing ₦250 billion to each of Nigeria’s 36 states would require a total of ₦9 trillion. This calculation excludes the Federal Government, the Federal Capital Territory (FCT) and the country’s 774 local government areas.
The Presidency explained that states receive 26.72 per cent of distributable revenue from the Federation Account Allocation Committee (FAAC). Based on this formula, it argued that NLNG would have needed to pay more than ₦33.68 trillion, equivalent to about $25 billion, in a single dividend declaration to generate ₦9 trillion for the states.
It further stated that NLNG had never made a single dividend payment of $25 billion to the Federation Account.
The Presidency added that the company had paid approximately $21.5 billion in dividends to the federation over the past 25 years, with less than $3 billion reportedly received since Tinubu assumed office.
Onanuga also accused Makinde of making misleading political statements and urged him to support his claims with verifiable evidence.
Makinde Demands Explanation Over Alleged ₦9trn Shortfall
Makinde, however, rejected the Presidency’s response and insisted that the government had failed to address the central issue surrounding the alleged unpaid dividends.
In a statement signed by his Special Adviser on Media, Dr Sulaimon Olanrewaju, the governor argued that a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with Federal Government support, had identified an alleged shortfall of about ₦9 trillion owed to states and local governments.
According to the governor’s aide, the report remains in the custody of both the Federal Government and the NGF. He also claimed that the government had accepted the findings of the exercise.
Olanrewaju questioned why the Presidency had focused on NLNG’s cumulative dividend payments rather than explaining how the funds were distributed among the different tiers of government.
He asked whether states and local governments had received their respective shares, how much each beneficiary received and what happened to the approximately $3 billion reportedly paid under the current administration.
The governor’s camp maintained that these questions must be answered through a detailed reconciliation of the relevant financial records.
Makinde-Daura Campaign Challenges Tinubu’s Government
The Makinde-Daura Presidential Campaign Organisation also dismissed the Presidency’s response, accusing the Federal Government of avoiding the central questions raised by the governor.
In a statement signed by its Director of Communications, Richard Nnanna Ihediwa, the campaign challenged President Tinubu to confirm whether the disputed dividends had been paid to the states.
The organisation argued that citing NLNG’s total dividend payments over 25 years did not establish how much was received during the specific period under discussion or whether the relevant funds had been approved for distribution.
It called on the Federal Government to publish NLNG dividend receipts, FAAC decisions and official communications showing the amounts received, the sums approved for distribution and the timing of any proposed payments.
The campaign also questioned whether the Federal Government had the constitutional authority to withhold funds accruing to states.
Furthermore, it defended Makinde’s position, describing his demand for an explanation as a legitimate call for accountability over public finances.
Makinde Accuses Tinubu of Running a ‘Voodoo Economy’
The dispute also took a political turn, with Makinde’s campaign organisation repeating the governor’s criticism of Tinubu’s economic management.
The campaign described the administration’s economic performance as a ‘voodoo economy’, arguing that official figures did not adequately reflect the financial difficulties experienced by Nigerians.
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It also maintained that Makinde’s presidential campaign was focused on accountability and economic reform under its RESET NIGERIA agenda.
The Presidency, meanwhile, accused the governor of using misleading claims for political purposes as he pursues his presidential ambition.
What Happens Next in the NLNG Dividend Dispute?
The disagreement between the Presidency and Makinde remains unresolved, with both sides presenting different interpretations of the disputed dividend payments.
While the Presidency maintains that the claim of ₦250 billion for each state is inconsistent with NLNG’s historical dividend figures, Makinde’s camp insists that the government must explain the alleged ₦9 trillion shortfall identified in the reconciliation exercise.
The key issue is whether official financial records can establish the amounts NLNG paid into the Federation Account, the sums approved for distribution and the amounts actually received by states and local governments.
Until the relevant records are made available and the competing claims are independently verified, the allegation that the Federal Government withheld the disputed funds remains contested.
