I Stand By My Claims On NLNG Dividends, Makinde Insists

The Oyo State Governor, Seyi Makinde, has insisted that the Federal Government was withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends for each state in the country.

His reaction was after the Presidency, on Sunday, denied the allegation, tagging it as “false”.

At the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, Governor Makinde claimed the funds would not be released until after the 2027 elections. The Allied Peoples Movement (APM) presidential candidate also claimed that the Federal Government had spent the money.

“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 said.

However, presidential spokesman 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 should be disregarded.”

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

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

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

Reacting to Onanuga’s response, in a release signed by the Special Adviser to Makinde on Media, Sulaimon Olanrewaju,  it noted that ” 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 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.

“The report remains in the custody of both the Federal Government and the NGF. “We trust the Presidency will not deny its existence.

“Governor Makinde is the NGF’s incumbent Vice-Chairman.

“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”.

“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?

“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis.

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