Governor Makinde challenged the FG, insisting the Nigerian government held NLNG dividends of N250 billion

Presidential candidate of the Allied Peoples Movement (APM) and governor of Oyo State, Seyi Makinde has insisted that the Federal Government withhold Nigeria LNG Limited (NLNG) dividends of ₦250 billion for every state in the country.

This comes even after the presidency on Sunday denied the allegations, which it said were “false”.

At an event at the University of Ibadan on Friday, Governor Makinde claimed the funds would not be released until after the 2027 elections, stating that the Federal Government had already spent the money.

“Each state was supposed to receive ₦250 billion. We have identified projects that will expand the economy of Oyo State. But they are now saying that the money will not be paid until after the elections. Are the elections more important than the Nigerian people?” asked the governor.

However, presidential spokesperson Bayo Onanuga, in a statement on Sunday, said, “Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and must be ignored.”

Onanuga detailed how the Federation Account is managed and how the money is divided among the three tiers of government and said, “Even as a one-off distribution, the ₦250 billion to each of the 36 states amounts to ₦9.0 trillion, excluding the Federal Government, the FCT and the 774 local councils.

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“Based on the Federation Account Allocation Committee (FAAC) formula, states receive 26.72% of the distributable revenues of the Federation Account. For the states’ share alone to reach ₦9 trillion, the total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion (approximately $25 billion) in a single declaration.”

The Presidency said, “NLNG has never paid dividends of $25 billion to the Federation Account in a single payment.”

Responding to Onanuga’s response, Makinde’s Special Adviser on Media, Sulaimon Olanrewaju in a statement, noted that ”we have read the Presidential response to Governor Seyi Makinde’s statement on the Federal Government withholding the NLNG dividend which is due to state and local governments.

“The response given ignores the main issue: The Nigerian Governors Forum (NGF), with the support of the Federal Government, engaged consultants to reconcile NLNG dividend payments.

“The exercise identified a shortfall of approximately ₦9 trillion caused by state and local governments. The Federal Government accepted the findings.

“This report remains under the scrutiny of the Federal Government and the NGF. “We believe the Presidency will not deny its existence.

“Governor Makinde is the current Deputy Chairman of the NGF.

“The Presidency states that NLNG has paid $21.5 billion in dividends to the Federation Account since its inception, including $3 billion received under the current administration. But it does not explain how these funds were disbursed.”

“Have state and local governments received their share? How much have they received, and how is that amount calculated? What happens to the $3 billion received under this administration?

“Governor Makinde conducted his public discourse politely and did not make unsubstantiated claims or quote figures without basis.

“We remain ready to provide further clarification as we urge the presidency to address the substance of this matter,” Makinde’s statement added.