The Presidency has dismissed claims by Oyo State Governor Seyi Makinde that the Federal Government is withholding N250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends meant for each of the 36 states, describing the allegation as false and inconsistent with the company’s financial records.
The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, disclosed this in a statement issued on Sunday, October 18, 2026.
The response followed comments made by Makinde, the Allied Peoples Movement (APM) presidential candidate for the 2027 general election, during the 2027 Budget Stakeholders’ Consultative Engagement held at the University of Ibadan on Friday, October 16.
Presidency challenges Makinde’s N250 billion claim
According to the Presidency, dividends accruing to the Federation from NLNG are subject to revenue-sharing arrangements among the three tiers of government, making Makinde’s claim of N250 billion for each state financially implausible.
Onanuga explained that distributing N250 billion to Nigeria’s 36 states would require N9 trillion for the states alone, excluding allocations to the Federal Government, FCT and local governments.
- “For the states’ share alone to reach N9 trillion, total NLNG dividends paid into the Federation Account would have to exceed N33.68 trillion (about $25 billion) in a single declaration,” the statement reads in part.
Under the Federation Account Allocation Committee (FAAC) formula cited by the Presidency, states receive 26.72% of distributable Federation Account revenue.
The Presidency stated:
- “NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.”
The Presidency further disclosed that NLNG had paid approximately $21.5 billion in dividends to the Federation over 25 years, with less than $3 billion received since Tinubu assumed office in May 2023.
It argued that Makinde’s allegation implied a single dividend distribution exceeding the company’s cumulative payments to the Federation.
Makinde questions withheld NLNG dividends
The controversy began after Makinde accused the Federal Government of withholding substantial NLNG dividend payments allegedly earmarked for infrastructure and economic development across Nigeria’s states.
Speaking during the budget stakeholders’ engagement in Ibadan, the governor questioned the decision to delay the alleged payments until after the 2027 general election.
- The governor maintained that his administration had prioritised infrastructure development as a foundation for economic growth, arguing that investments in critical infrastructure had increased asset values across Oyo State.
The dispute also comes amid broader concerns about Nigeria’s ability to maximise revenue from its natural gas resources, particularly through commercialisation and reduced gas flaring.
In 2025, Nigeria flared approximately 203.9 billion standard cubic feet of natural gas, despite utilising 92.4% of its total gas production.
NLNG records $150 billion revenue
Nigeria LNG Limited (NLNG) is a natural gas processing and export company jointly owned by the Nigerian government, through NNPC Limited, and international energy companies, including Shell, TotalEnergies and Eni.
The Nigerian government holds a 49% stake, while the remaining 51% belongs to international shareholders. The company processes natural gas into liquefied natural gas for export, generating revenue from which profits can be distributed as dividends.
- In late August, President Tinubu urged NLNG’s management to increase the economic benefits derived from Nigeria’s natural gas reserves, particularly by converting resources otherwise lost through gas flaring into commercially valuable products.
- During a meeting with the company’s board at the State House, NLNG Managing Director Adeleye Falade disclosed that the company had generated over $150 billion in cumulative revenue since inception, with shareholders collectively receiving approximately $47 billion in dividends.
In 2024, Nigeria recorded a 12% increase in gas flaring, the second-largest increase globally, reinforcing concerns about the economic and environmental costs of unutilised gas resources.