₦250bn NLNG Dividends: Presidency, Makinde Clash Over Alleged ₦9tn Shortfall to States

The Presidency has dismissed Oyo State Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends for each state, insisting that the allegation is false and inconsistent with the company’s historical dividend payments.

However, Makinde has doubled down on his allegation, challenging the Federal Government to explain how NLNG dividends paid into the Federation Account were distributed among states and local governments.

The dispute escalated after the Presidency, through the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, said Makinde’s claim that the funds would not be released until after the 2027 general elections should be disregarded. The governor had made the allegation during the 2027 Budget Stakeholders’ Consultative Engagement at the University of Ibadan.

According to the Presidency, distributing ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government areas. It argued that, under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, the states’ share would require total NLNG dividend payments exceeding ₦33.68 trillion, or approximately $25 billion, in a single declaration.

Onanuga stated that NLNG had never paid $25 billion in dividends to the Federation Account in one transaction. He added that the company had paid approximately $21.5 billion in dividends to the federation over 25 years, with less than $3 billion received since Tinubu assumed office.

The Presidency maintained that the figures contradicted the suggestion that a single dividend payment large enough to fund the alleged allocation was being withheld. It also accused Makinde of making misleading claims for political purposes as he pursues his presidential ambition under the Allied Peoples Movement (APM).

But Makinde, through his Special Adviser on Media, Dr Sulaimon Olanrewaju, rejected the Presidency’s response, insisting that it had failed to address the central issue. He said a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with Federal Government support, had reportedly identified a shortfall of about ₦9 trillion owed to states and local governments.

According to the governor’s aide, the report remains with both the Federal Government and the NGF, and the Presidency should explain how the dividends were distributed, how much each tier of government received and what happened to the approximately $3 billion reportedly paid during the current administration. Makinde’s camp also argued that cumulative dividend figures over 25 years do not establish whether specific payments were received, approved for distribution or withheld during the period under discussion.

The Makinde-Daura Presidential Campaign Organisation also challenged the Presidency to publish NLNG dividend receipts, relevant FAAC decisions and official communications showing the amounts received and approved for distribution. The campaign insisted that the dispute could only be resolved through financial records rather than political exchanges, maintaining that Nigerians deserved clear answers on the alleged shortfall. The central question remains whether the records support Makinde’s claim of outstanding payments to states and local governments, an issue that requires documentary clarification from the relevant authorities.