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The Presidency has rejected Oyo State Governor Seyi Makinde’s allegation that the Federal Government is withholding the ₦250 billion Nigerian LNG (NLNG) dividend allocated to each state until after the 2027 general elections, and described the claim as false and inconsistent with available financial records.
In a statement issued by State House on Sunday, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, urged Nigerians to ignore the allegations, arguing that the figures quoted by the governor were not in line with the established revenue sharing formula or the dividend payment history of NLNG.
Makinde reported these allegations on Friday during the 2027 Budget Stakeholder Consultative Engagement event at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan.
At the event, the governor said the expected funds would enable his administration to embark on projects designed to expand the economy of Oyo State, but stated that the money would not be disbursed until after the elections.
According to Onanuga, Makinde stated: “Each state should 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?”
The Presidency however disputed the financial basis of the claim, and insisted that the alleged amount entailed the payment of an unprecedented dividend by NLNG into the Federation Account.
“The Presidency wishes to clarify Governor Seyi Makinde’s claim that the Federal Government is withholding NLNG dividends of ₦250 billion for every state in the Federation.
“At the 2027 Budget Stakeholders Consultative Meeting held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, Makinde claimed the funds would not be disbursed until after the 2027 elections. He further stated that the Federal Government had already spent the money.”
The statement then stated that Makinde’s “recent claim that the Federal Government is withholding the NLNG dividend windfall is false and should be ignored.”
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Explaining its position, the Presidency said that distributing ₦250 billion to each of the 36 states would require a total of ₦9 trillion, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government councils.
It was explained that based on the revenue sharing formula of the Federation Account Allocation Committee (FAAC), states collectively receive 26.72 per cent of the distributable revenue of the Federation Account.
As a result, the Presidency argued that for states to receive ₦9 trillion from a single NLNG dividend declaration, the total amount paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to about $25 billion.
The statement read: “Here are the facts the public should know about how the Federation Account is managed and how money is divided between the three tiers of government.
“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.
“Based on the Federation Account Allocation Committee (FAAC) formula, states receive 26.72% of the distributable revenues of the Federation Account. For the state’s share alone to reach ₦9 trillion, the total NLNG dividends paid to the Federation Account would have to exceed ₦33.68 trillion (approximately $25 billion) in one declaration,” the statement added.
The Presidency stated that such a payment had never occurred, stating that “NLNG has never paid dividends of $25 billion to the Federation Account in a single payment.”
The report further cited the company’s dividend payment history stating that the amounts claimed by Makinde were inconsistent with its financial records.
“NLNG has paid about $21.5 billion in dividends to the Federation over the last 25 years, with less than $3 billion realized since President Bola Ahmed Tinubu took office.
“Therefore, any claim that a single payment exceeds the company’s lifetime distribution to the Federation—and is withheld—contradicts basic logic and economic reality.”
Apart from debating the figures, Onanuga criticized Makinde’s public statements since he declared his presidential ambitions, and accused Makinde of making claims that the Presidency deemed misleading.
“We hope Governor Makinde will be more careful in his behavior and speech in public. Since he started running for president, he has chosen to play politics by making misleading claims rather than presenting verifiable facts. Indeed, he has turned false and unguarded statements and claims into an art form.
“He once described huge financial flows from federation accounts to states, including Oyo, as ‘voodoo’.”
The Presidency recognized the governor’s constitutional right to run for president but urged him to avoid statements deemed to be misinformation.
It said Makinde was free to “pursue” his presidential ambitions, while calling on the APM candidate to “stop making lies and disinformation a feature of his campaign.
“We urge the public to ignore these baseless claims, which only serve to mislead citizens and fuel unnecessary discontent with Federal authorities.”
The Federal Government owns 49 percent of NLNG, making it the major shareholder in the gas company.
In July, NLNG Chief Executive Officer Adeleye Falade revealed that the company had paid $47.2 billion in dividends to all its shareholders, including the Federal Government, out of $149.6 billion in revenue generated since operations began.
Figures contained in the NLNG Facts and Figures report also show that annual payments to the Nigerian National Petroleum Company Limited, its government shareholder, reached $1.39 billion in 2014, $722.44 million in 2021, and $1.10 billion in 2022.
Meanwhile, 36 states reportedly received ₦4.83 trillion from the Federation Account between January and June, with Oyo State receiving ₦147.32 billion.
Makinde declared his presidential ambitions on May 14 at a rally in Ibadan, adopting the platform of the Allied People’s Movement following an alliance between the party and a faction of the People’s Democratic Party led by Kabiru Turaki.
