The Presidency has dismissed Oyo State Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in Nigeria LNG (NLNG) dividends for each state, insisting that the alleged payment does not reflect the country’s revenue-sharing arrangements or the company’s dividend history.
In a statement issued on Sunday, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, described the governor’s allegation as false and urged Nigerians to disregard it.
Makinde reportedly made the claim on Friday during the 2027 Budget Stakeholders’ Consultative Engagement at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan.
The governor alleged that each state was expected to receive ₦250 billion from NLNG dividends but that the Federal Government had delayed payment until after the 2027 general elections.
According to the statement, Makinde said the Oyo State Government had already identified projects that would expand the state’s economy but was concerned that the funds would not be released before the election.
“Each state was supposed to get ₦250 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?” the governor was quoted as saying.
The Presidency rejected the allegation, arguing that the amount being discussed would require an exceptionally large dividend declaration from NLNG.
It said distributing ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government areas.
Using the Federation Account Allocation Committee (FAAC) revenue-sharing formula cited in the statement, the Presidency said states receive 26.72 per cent of distributable Federation Account revenue.
On that basis, it argued that the total dividend payment into the Federation Account would have to exceed ₦33.68 trillion, equivalent to approximately $25 billion, for the states’ combined share to reach ₦9 trillion.
The Presidency maintained that NLNG had never paid $25 billion in dividends to the Federation Account in a single payout.
It added that the company had distributed approximately $21.5 billion in dividends to the Federation over 25 years, with less than $3 billion reportedly realised since Tinubu assumed office.
“Therefore, any claim that a single payout exceeds the company’s entire lifetime distribution to the Federation, and is being withheld, defies basic logic and economic reality,” the statement said.
The Presidency also criticised Makinde’s public comments, urging him to substantiate his claims with verifiable information rather than make allegations it considers misleading.
It said the governor was free to pursue his presidential ambition but called on him to avoid statements that could misinform the public or create unnecessary tension between the Federal Government and the states.
The Federal Government holds a 49 per cent stake in NLNG, making the company an important source of dividend income for the government through its shareholding.
In July, NLNG Chief Executive Officer Adeleye Falade reportedly said the company had paid $47.2 billion in dividends to all its shareholders, including the Federal Government, from revenue of $149.6 billion since operations began.
The figure covers payments to all shareholders and should not be confused with the amount paid into the Federation Account for distribution among the three tiers of government.
Figures cited in the report also showed that the 36 states collectively received ₦4.83 trillion from the Federation Account between January and June, with Oyo State receiving ₦147.32 billion during the period.
Makinde declared his presidential ambition on May 14 in Ibadan under the Allied People’s Movement (APM), following an alliance between the party and a faction of the Peoples Democratic Party led by Kabiru Turaki.
The dispute over the alleged NLNG dividend payment comes as political parties and public officials begin positioning themselves ahead of the 2027 general elections.
However, the Presidency’s response does not, by itself, establish whether any specific NLNG dividend payment is currently outstanding. The key issues are whether a dividend was declared for distribution through the Federation Account, the amount involved, and whether any payment was formally delayed. Those details would require supporting financial records or clarification from the relevant authorities.
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