Governor Seyi Makinde of Oyo State has raised fresh concerns over the withholding of Nigeria LNG (NLNG) dividend funds meant for States, describing the delay as a major setback for subnational development planning and long-term infrastructure investment.
Speaking on Friday at the Year 2027 Budget Stakeholders’ Consultative Engagement, held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, the governor disclosed that each State is entitled to a refund of N250 billion from NLNG dividends.
He noted, however, that the funds had been withheld until after the 2027 elections, an action he said, undermines economic expansion efforts across the federation.
Governor Makinde explained that his administration had already identified strategic projects that would accelerate Oyo State’s economic growth once the NLNG funds were released. He questioned the rationale behind delaying the payments.
He said, “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?”
The governor’s remarks framed the NLNG dividend issue as central to the fiscal realities confronting states. He noted that rising costs of governance and infrastructure have placed additional pressure on state budgets. He added that Oyo State’s wage bill had grown from N4.5 billion in 2019 to N18 billion in 2026, while the cost of major projects has skyrocketed due to inflation.
Governor Makinde argued that timely release of NLNG dividends would help States cushion these pressures, maintain project pipelines, and sustain economic momentum.
Turning to the broader consultative engagement, the governor said his administration understood early that infrastructure development is the foundation for economic growth. He noted that such investments have significantly increased the value of assets across the state.
According to him, what Oyo State needs going forward is not necessarily more engineers, but prudent financial managers who will maintain and enhance the institutional reforms already in place.
Governor Makinde further noted that his administration would implement only about 30% of the 2027 budget, since a new government will assume office on May 29, 2027.
He thanked residents for their support, stating that over the last seven years, any item included in the budget had a 70% chance of being executed.
On agriculture, the governor defended his administration’s tractorisation policy, explaining that scrapping the loss-making government tractor unit and privatising tractor services had improved farmers’ access to mechanisation.
Adebo Ogundoyin, the Speaker of the Oyo State House of Assembly, commended the governor for institutionalising public consultation in the budget process, noting that people centred budgeting had improved project execution across the state.
Musibau Babatunde, Professor and Secretary to the State Government, highlighted the administration’s shift from ad- hoc budgeting to a performance driven model, with over 70% budget performance recorded in 2026.
He explained that the consultative model, which began with three Senatorial Districts and expanded to all geopolitical zones, has been institutionalised with a feedback mechanism, quarterly budget tracking, and mandatory compliance by MDAs.
He added that no Ministry, Department or Agency is allowed to defend its budget at the pre-treasury stage without demonstrating how it incorporated public inputs from the stakeholders’ engagement.
Earlier, Ayobami Ojo, the Commissioner for Budget and Economic Planning, described the consultative forum as a strategic platform for consensus building on development priorities.
He emphasised that the 2027 budget must be guided by realistic revenue projections, prudent expenditure, and effective resource allocation.
Stakeholders, including local government representatives, advisory council members, student unions, farmers, persons with disabilities, religious leaders, civil society groups, artisans, and market associations, commended the Governor for the transformation of the state and offered recommendations on roads, security, welfare, and project maintenance.
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