Presidency Challenges Makinde’s ₦250bn Claim, Says NLNG Has Never Paid Such Dividends

BY TAIBAT UMMI YAKUBU

The Presidency has challenged Oyo State Governor Seyi Makinde to back up his allegation that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends from each state, insisting that the figures he cited do not add up.

In a statement issued on Sunday, October 18, President Bola Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, described the governor’s claim as misleading and urged Nigerians not to accept it without scrutiny.

The controversy followed Makinde’s address at the 2027 Budget Stakeholders’ Consultative Engagement held on Friday at Olola Ogunlana Hall, International Conference Centre, University of Ibadan, where he accused the Federal Government of delaying the distribution of the alleged funds until after the 2027 general election.

The governor expressed concern that the delay could frustrate development plans already drawn up by his administration, saying the money had been earmarked for projects expected to strengthen Oyo State’s economy.

“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 asked.

However, the Presidency countered the allegation with figures from Nigeria’s revenue-sharing arrangement, arguing that the amount claimed by the governor was inconsistent with the scale of NLNG’s dividend payments and the distribution of revenue among the three tiers of government.

According to Onanuga, paying ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion. That calculation, he noted, excludes the Federal Government, the Federal Capital Territory and the country’s 774 local government councils.

The Presidency explained that state governments receive 26.72 per cent of distributable revenue under the Federation Account Allocation Committee (FAAC) formula. Based on that percentage, it argued that the NLNG would have needed to pay more than ₦33.68 trillion in dividends into the Federation Account for the states alone to receive the ₦9 trillion being discussed.

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Such a payment, the statement said, would be equivalent to approximately $25 billion in a single dividend declaration.

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

It further stated that NLNG had contributed approximately $21.5 billion in dividends to the Federation over the past 25 years, adding that less than $3 billion had been realised since Tinubu assumed office.

Onanuga argued that the figures made Makinde’s allegation difficult to reconcile with the company’s dividend history, maintaining that a single payment of the magnitude suggested by the governor would exceed NLNG’s reported cumulative dividend contributions over the period cited.

Beyond the financial disagreement, the Presidency accused Makinde of making statements it considered politically motivated, linking the controversy to the governor’s reported presidential ambition ahead of the 2027 elections.

While acknowledging that Makinde had the right to pursue the presidency, Onanuga urged him to exercise restraint in his public statements and avoid claims the Presidency considers inaccurate.

“Under Nigerian law, Governor Makinde is free to pursue his presidential ambition. He should desist from making falsehoods and disinformation the hallmarks of his campaign,” the statement said.

The Presidency maintained that the allegation could mislead Nigerians and fuel unnecessary tension between citizens and the Federal Government.

The dispute has placed the question of NLNG dividends and their distribution at the centre of a fresh political disagreement, with Makinde raising concerns about the timing of the alleged payment and the Presidency challenging the financial basis of his claim.