NLNG Dividend Delay Hurting States, Says Makinde

Oyo State Governor, Seyi Makinde, has criticised the delay in releasing Nigeria LNG (NLNG) dividend funds due to states, saying the development is affecting subnational development plans and long-term infrastructure investment.

Makinde spoke at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan on Saturday.

He said each state was expected to receive ₦250 billion from the NLNG dividends but claimed the funds would not be released until after the 2027 elections.

“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 asked.

Makinde said the delay could affect states’ ability to sustain infrastructure projects and respond to rising costs of governance.

He disclosed that Oyo State’s monthly wage bill had risen from ₦4.5 billion in 2019 to ₦18 billion in 2026, while inflation had significantly increased the cost of major projects.

The governor said the timely release of the funds would help states manage these pressures, sustain ongoing projects and maintain economic growth.

On the state’s development priorities, Makinde said his administration had recognised infrastructure as a foundation for economic growth, adding that investments in the sector had increased the value of assets across Oyo State.

He said the next phase of development would require prudent financial managers to maintain and improve the institutional reforms already established, rather than simply increasing the number of engineers.

Makinde also said his administration would implement about 30 per cent of the 2027 budget, noting that a new government would take over on May 29, 2027.

He thanked residents for their support, saying that over the past seven years, budgeted projects had enjoyed a 70 per cent chance of implementation.

On agriculture, the governor defended his administration’s tractorisation policy, saying the decision to scrap the loss-making government tractor unit and privatise tractor services had improved farmers’ access to mechanisation.

The Speaker of the Oyo State House of Assembly, Adebo Ogundoyin, commended the governor for making public consultation part of the budget process, saying people-centred budgeting had improved project execution.

The Secretary to the State Government, Musibau Babatunde, said the administration had moved from ad hoc budgeting to a performance-driven model, recording more than 70 per cent budget performance in 2026.

He said the consultative process, which began in the three senatorial districts before expanding across the state, now includes feedback mechanisms, quarterly budget tracking and mandatory compliance by ministries, departments and agencies (MDAs).

According to him, MDAs must demonstrate how they incorporated public contributions from stakeholder engagements before they can defend their budgets at the pre-treasury stage.

Earlier, the Commissioner for Budget and Economic Planning, Ayobami Ojo, described the engagement as a platform for building consensus on development priorities. He said the 2027 budget should be based on realistic revenue projections, prudent expenditure and effective resource allocation.

Participants, including local government representatives, student unions, farmers, persons with disabilities, religious leaders, civil society groups, artisans and market associations, offered recommendations on roads, security, welfare and project maintenance.

The event was attended by Deputy Governor Bayo Lawal, Chief of Staff Akinwale Akinwole, Head of Service Adenike Fashina, government officials, traditional rulers, labour leaders and youth groups, among others.