The Presidency has refuted a claim by the Oyo State Governor and presidential candidate of the Allied People’s Movement in the 2027 general election, Seyi Makinde, in which the latter alleged that the Federal Government was withholding ₦250 billion per state dividend from Nigeria LNG.
In a State House statement issued on Sunday, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, described the governor’s claim as false and said “it should be disregarded.”
Onanuga had quoted Makinde when he spoke at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday.
He noted that Makinde claimed the funds would not be released until after the 2027 elections.
Onanuga stated that, according to Makinde, “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 statement read partly, “The Presidency wishes to clarify Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in NLNG dividends for each state of the Federation.
“At the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, Makinde claimed the funds would not be released until after the 2027 elections. He further 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 was quoted.
However, the statement said that “Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded.”
According to the statement, if each state of the Federation receives ₦250bn as a “one-off distribution,” that would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local councils nationwide.
Using the sharing formula of the Federation Account Allocation Committee as a standard, states receive 26.72% of the distributable Federation Account revenue.
Hence, it is argued that the 36 states would only receive the purported ₦250bn provided the total NLNG dividends paid into the Federation Account (in a single declaration) exceed ₦33.68 trillion (about $25 billion).
However, the Presidency cautioned that the NLNG has never paid $25bn in dividends to the Federation Account in a single payout.
“Here are the facts the public should know about how the Federation Account is managed and how money is shared among the three tiers of government.
“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 statement added.
The Presidency affirmed that the “NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.”
Based on history, the Presidency stated, “NLNG has paid approximately $21.5 billion in dividends to the Federation over the last 25 years, with less than $3 billion realised since President Bola Ahmed 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.
“We expect Governor Makinde to be more measured in his public conduct and utterances. Since he embarked on his presidential bid, he has chosen to play politics by making misleading claims rather than presenting verifiable facts. Indeed, he has turned false, unguarded statements and claims into an art form.
“He once described the huge financial flow from the federation account to states, including Oyo, as ‘voodoo’.”
The statement stressed that according to the nation’s Constitution, Makinde has the freedom to “pursue” his presidential ambition, but it urged the APM presidential candidate to “desist from making falsehoods and disinformation the hallmarks of his campaign.
“We urge the public to disregard these unfounded claims, which serve only to mislead citizens and stoke needless disaffection against the Federal authorities.”
The Federal Government holds 49 per cent of NLNG.
In July, the Chief Executive Officer of NLNG, Adeleye Falade, said the company had paid $47.2bn in dividends to all shareholders, including the Federal Government, from revenue of $149.6bn since it began operations.
Annual payments to NNPC, its government shareholder, were $1.39bn in 2014, $722.44m in 2021 and $1.10bn in 2022, according to NLNG’s Facts and Figures report.
The 36 states reportedly received N4.83tn from the Federation Account between January and June, with Oyo getting N147.32bn.
The Oyo governor declared his presidential ambition on 14 May at a rally in Ibadan, under the APM, after the party signed an alliance with a faction of the Peoples Democratic Party led by Kabiru Turaki.