Presidency disputes Makinde’s claim of N250 billion NLNG dividends per state

The presidency has disputed Oyo State Governor Seyi Makinde’s claim that the federal government is withholding N250 billion in Nigeria Liquefied Natural Gas Limited (NLNG) dividends meant for each state, describing the allegation as “false.”

Bayo Onanuga, special adviser to President Bola Tinubu on information and strategy, said in a statement on Sunday that the amount claimed by the governor was inconsistent with the revenue-sharing formula and the history of NLNG’s dividend payments to the Federation.

Mr Onanuga argued that a one-off payment of N250 billion to each of Nigeria’s 36 states would amount to N9 trillion, excluding the federal government, the Federal Capital Territory and the 774 local government areas.

“Under the Federation Account Allocation Committee (FAAC) formula, states receive 26.72 per cent of the distributable Federation Account revenue. 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 read. “NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.”

Mr Onanuga urged the public to disregard the claim. “Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded.”

However, the presidency’s statement did not provide a transaction-by-transaction reconciliation of the specific NLNG dividend proceeds referenced by Mr Makinde or a breakdown of the sums allegedly due to individual states.

The dispute followed remarks by Mr Makinde at the 2027 Budget Stakeholders’ Consultative Engagement in Ibadan on Friday, where he alleged that the Federal Government had spent the dividend proceeds instead of distributing the states’ shares.

“They fooled us. The Nigeria LNG paid dividends to the Federal Government, which went straight into the Federation Account, but they spent it,” Mr Makinde said,

He stated that the amounts due to the states had been reconciled and that each state was expected to receive more than N250 billion.

Mr Makinde, the presidential candidate of the Allied People’s Movement for the upcoming 2027 elections, further alleged that the release of the funds had been postponed until after the 2027 general elections, questioning why political considerations should take precedence over the needs of citizens.

“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 said.

Presidency’s argument

Responding, Mr Onanuga said states receive 26.72 per cent of distributable Federation Account revenue under the Federation Account Allocation Committee (FAAC) sharing formula.

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He argued that for the states’ combined share to reach N9 trillion, the total NLNG dividends paid into the Federation Account would have to exceed N33.68 trillion ($25 billion), in a single declaration.

“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the presidency’s statement read.

According to the statement, NLNG has paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since Mr Tinubu assumed office.

Mr Onanuga argued that the amount allegedly being withheld would therefore exceed the company’s entire historical dividend payments to the Federation.

“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,” he said.