By Chibuzor Alli
The Presidency and Oyo State Governor Seyi Makinde have traded accusations over an alleged N9tn shortfall in Nigeria LNG Limited (NLNG) dividends due to states and local governments, with both sides demanding answers over the handling of the funds.
The dispute intensified on Sunday after the Presidency rejected Makinde’s claim that the Federal Government had withheld N250bn in NLNG dividends meant for each state until after the 2027 elections.
In a statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency described the governor’s claim as false, arguing that the amount involved was inconsistent with NLNG’s dividend payment history.
However, Makinde, through his Special Adviser on Media, Dr Sulaimon Olanrewaju, maintained that the central issue was not the company’s total dividend payments but how the funds were distributed among the different tiers of government.
Presidency challenges N250bn-per-state claim
The controversy followed Makinde’s remarks at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday.
The governor had alleged that each state was entitled to N250bn from the dividends but that payment had been postponed until after the 2027 elections.
“Each state was supposed to get N250bn. 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 also reportedly claimed that the dividends had entered the Federation Account but were spent solely by the Federal Government.
According to the governor, President Bola Tinubu had assured state governors that the money would be paid after the elections.
The Presidency disputed the figures, insisting that the claim did not align with the amounts NLNG had distributed to the Federation over the years.
Onanuga cites N9tn calculation
Onanuga argued that paying N250bn to each of Nigeria’s 36 states would amount to N9tn, excluding the Federal Government, the Federal Capital Territory and the country’s 774 local government areas.
He noted that states receive 26.72 per cent of distributable revenue under the Federation Account Allocation Committee revenue-sharing formula.
For the states’ allocation alone to reach N9tn, he said, NLNG dividends paid into the Federation Account “would have to exceed N33.68tn (about $25bn) in a single declaration.
“NLNG has never paid $25bn in dividends to the Federation Account in a single payout.”
The Presidency further stated that NLNG had distributed approximately $21.5bn in dividends to the federation over 25 years, with less than $3bn realised since 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,” the Presidency said.
It urged Nigerians to disregard Makinde’s allegations, accusing the governor of making misleading claims since declaring his presidential ambition.
The statement also recalled Makinde’s previous description of the substantial funds flowing from the Federation Account to states, including Oyo, as voodoo.
“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 Presidency added.
It said the allegations could mislead citizens and create unnecessary resentment towards the Federal Government.
Makinde demands breakdown of NLNG dividend payments
Responding to the Presidency, Makinde’s media aide, Olanrewaju, said the statement failed to address the substance of the controversy: how NLNG dividends paid into the Federation Account were shared.
He disclosed that the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, had engaged a consultant to reconcile the dividend payments.
According to the governor’s aide, the exercise identified a shortfall of approximately N9tn due to states and local governments, and the Federal Government accepted the findings.
“The report remains in the custody of both the Federal Government and the NGF. We trust the Presidency will not deny its existence,” the statement said.
The response also highlighted Makinde’s position as the NGF’s incumbent vice-chairman and challenged the Presidency to provide a detailed account of the funds received and distributed.
“The Presidency stated that NLNG had paid $21.5bn in dividends into the Federation Account since inception, including $3bn received under the current administration. But it did not explain how these funds were disbursed.
“Have states and local governments received their shares? How much did they receive, and how were those amounts calculated? What happened to the $3bn received under this administration?
“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis. We remain ready to provide further clarification while we urge the Presidency to address the substance of the matter.”
The governor’s camp maintained that the existence of the reported reconciliation exercise and the distribution of the dividends required clarification from the Federal Government.
NLNG reports $47.2bn in dividends to shareholders
The dispute comes against the backdrop of NLNG’s reported financial contributions to its shareholders.
In July, the company’s Chief Executive Officer, Adeleye Falade, said NLNG had paid $47.2bn in dividends to all shareholders, including the Federal Government, from revenue of $149.6bn since it began operations.
The Federal Government holds a 49 per cent stake in the company.
NLNG’s Facts and Figures report also recorded annual payments to the Nigerian National Petroleum Company Limited, its government shareholder, of $1.39bn in 2014, $722.44m in 2021 and $1.10bn in 2022.
Meanwhile, states reportedly received N4.83tn from the Federation Account between January and June, with Oyo State receiving N147.32bn during the period.
Makinde’s presidential bid adds political context
Makinde declared his presidential ambition on May 14 at a rally in Ibadan under the Allied People’s Movement (APM), following the party’s alliance with a faction of the Peoples Democratic Party led by Kabiru Turaki.
The disagreement over NLNG dividends has therefore brought questions about revenue allocation and public accountability into the political debate ahead of the 2027 elections.
While the Presidency insists that Makinde’s N250bn-per-state claim is inconsistent with NLNG’s historical dividend payments, the governor’s camp says the government must explain how the funds received were distributed.
The key question now is whether the reported N9tn reconciliation findings will be made public and whether the Federal Government and the Nigeria Governors’ Forum will provide a detailed breakdown of the disputed dividend payments.
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