Presidency Denies Makinde’s ₦250bn NLNG Dividend Claim

The Presidency has rejected Oyo State Governor Seyi Makinde’s allegation that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends meant for each state, arguing that the claim is inconsistent with the country’s revenue-sharing formula and the company’s historical dividend payments.

The denial was contained in a statement issued on Sunday, October 18, by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy.

Makinde had raised the issue during the 2027 Budget Stakeholders’ Consultative Engagement at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, October 16.

The governor alleged that each state was entitled to ₦250 billion from NLNG dividend proceeds but that the Federal Government had indicated the money would not be released until after the 2027 general 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?” Makinde was quoted as saying.

In response, Onanuga described the allegation as false and urged Nigerians to disregard it.

The presidential spokesman argued that distributing ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government areas.

He explained that, under the Federation Account Allocation Committee (FAAC) revenue-sharing formula cited by the Presidency, states receive 26.72 per cent of distributable Federation Account revenue.

According to the statement, for the states’ combined share to reach ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to approximately $25 billion, in a single declaration.

“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” Onanuga said.

The Presidency further stated that NLNG had paid approximately $21.5 billion in dividends to the Federation over the previous 25 years, with less than $3 billion realised since Tinubu assumed office in May 2023.

Onanuga argued that the amount Makinde described as being withheld would exceed the company’s reported cumulative dividend payments to the Federation.

The statement also criticised the governor’s public remarks, urging him to exercise restraint as he pursues his presidential ambition under the Allied Peoples Movement (APM).

APM Calls for Publication of Financial Records

The dispute continued after the APM presidential campaign organisation challenged the Presidency’s response and called for the publication of relevant financial records to clarify the status of the alleged dividend proceeds.

The campaign organisation’s Director of Strategic Communications, Richard Nnanna Ihediwa, questioned the Presidency’s rejection of the claim and argued that the relevant records should be made public to establish what funds had been received, allocated or remained outstanding.

The Presidency’s statement set out its calculations based on the revenue-sharing formula and historical dividend payments. However, it did not provide a transaction-by-transaction reconciliation of the specific proceeds referenced by Makinde or a detailed breakdown of any amount allegedly due to individual states.

The dispute has brought renewed attention to the management and distribution of NLNG dividend proceeds through the Federation Account, as well as the need for transparent financial records to clarify competing claims.

No independent reconciliation of the specific ₦250 billion-per-state allegation was identified in the reports reviewed for this article.