The Presidency has dismissed allegations by Oyo State Governor Seyi Makinde that the Federal Government is withholding ₦250 billion in Nigeria LNG (NLNG) dividends allocated to each state until after the 2027 general elections, describing the claim as false and inconsistent with available financial records.
In a statement issued by the State House on Sunday, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, urged Nigerians to disregard the allegation, arguing that the figures cited by the governor do not align with the established revenue-sharing formula or NLNG’s dividend payment history.
Makinde reportedly made the allegation on Friday during the 2027 Budget Stakeholders’ Consultative Engagement at Olola Ogunlana Hall, International Conference Centre, University of Ibadan.
At the event, the governor said the expected funds would have enabled his administration to embark on projects designed to expand Oyo State’s economy, but alleged that the money would not be released until after the elections.
According to Onanuga, Makinde stated: “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 Presidency, however, challenged the financial basis of the claim, insisting that the alleged amount would require an unprecedented dividend payment by NLNG into the Federation Account.
“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.”
The statement subsequently declared that “Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded.”
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Explaining its position, the Presidency said distributing ₦250 billion to each of the 36 states would require a total of ₦9 trillion, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government councils.
It explained that under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, the states collectively receive 26.72 per cent of distributable Federation Account revenue.
Consequently, the Presidency argued that for the states to receive ₦9 trillion from a single NLNG dividend declaration, the total amount paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to approximately $25 billion.
The statement read: “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 maintained that such a payment had never occurred, stating that the “NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.”
It further cited the company’s historical dividend payments to argue that the amount claimed by Makinde was inconsistent with its financial record.
“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.”
Beyond disputing the figures, Onanuga criticised Makinde’s public statements since he declared his presidential ambition, accusing him of making claims that the Presidency considers misleading.
“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 Presidency acknowledged the governor’s constitutional right to seek the presidency but urged him to avoid statements it described as misinformation.
It said Makinde was free to “pursue” his presidential ambition, while calling on the APM 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 owns 49 per cent of NLNG, making it a major shareholder in the gas company.
In July, NLNG Chief Executive Officer Adeleye Falade disclosed that the company had paid $47.2 billion in dividends to all its shareholders, including the Federal Government, from revenue of $149.6 billion generated since operations began.
Figures contained in NLNG’s Facts and Figures report also showed that annual payments to the Nigerian National Petroleum Company Limited, its government shareholder, stood at $1.39 billion in 2014, $722.44 million in 2021 and $1.10 billion in 2022.
Meanwhile, the 36 states reportedly received ₦4.83 trillion from the Federation Account between January and June, with Oyo State accounting for ₦147.32 billion.
Makinde declared his presidential ambition on May 14 at a rally in Ibadan, adopting the platform of the Allied People’s Movement following an alliance between the party and a faction of the Peoples Democratic Party led by Kabiru Turaki.
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