Makinde Replies FG, Insists States, LGs Are Owed NLNG Dividends
Oyo State Governor Seyi Makinde has reaffirmed his claim that states and local governments are owed about ₦9 trillion in Nigeria LNG (NLNG) dividends.
Makinde, through his Special Adviser on Media, Dr Sulaimon Olanrewaju, said the Presidency failed to address the central issue in its response to the governor’s earlier comments about the alleged withholding of NLNG dividends.
In a statement issued on Sunday, the governor maintained that a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the support of the Federal Government, had identified a shortfall of about ₦9 trillion due to states and local governments.
The statement said the Federal Government had accepted the findings of the exercise, adding that the report remained in the custody of both the government and the NGF.
“We have read the Presidency’s response to Governor Seyi Makinde’s statement on the Federal Government’s withholding of NLNG dividends due to states and local governments,” the statement said.
“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.”
Makinde’s camp expressed confidence that the Presidency would not deny the existence of the report, noting that the governor currently serves as the NGF’s vice-chairman.
The governor’s media adviser said the Presidency had disclosed the total dividends paid into the Federation Account without providing details of how the money was subsequently shared among the federal, state and local governments.
“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 statement said.
It added: “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?”
The governor’s camp insisted that Makinde’s claim was based on figures from the reconciliation exercise and should not be dismissed without addressing the findings of the report.
“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis,” the statement added.
It also expressed the governor’s willingness to provide further clarification while urging the Presidency to respond directly to the questions surrounding the reconciliation exercise and the distribution of NLNG dividends.
“We remain ready to provide further clarification while we urge the Presidency to address the substance of the matter,” the statement said.
The statement comes after the Presidency dismissed Makinde’s earlier claim that the Federal Government was withholding ₦250 billion in NLNG dividends for each state until after the 2027 general elections.
The Presidency had described the allegation as false, arguing that the amount cited by the governor was inconsistent with NLNG’s historical dividend payments and the revenue-sharing formula used to distribute funds among the three tiers of government.
In a statement issued on Sunday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said NLNG had paid approximately $21.5 billion in dividends into the Federation Account over the past 25 years.
Onanuga also stated that less than $3 billion had been received under President Bola Tinubu’s administration.
According to the Presidency, distributing ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government councils.
It argued that, under the Federation Account Allocation Committee revenue-sharing formula, states receive 26.72 per cent of distributable revenue from the Federation Account.
Onanuga maintained that NLNG would have needed to declare dividends exceeding ₦33.68 trillion, equivalent to about $25 billion, in a single payout for the states’ collective share to reach ₦9 trillion.
“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the presidential spokesman said.
Makinde had earlier raised the issue while speaking at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday.
During the engagement, the governor said Oyo State had identified projects that could expand its economy but alleged that the Federal Government had decided to delay the payment of the expected funds until after the 2027 elections.
“Each state was supposed to get N250 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?” he asked.
