Morganable politics/Governance
Makinde further alleged that the dividends had already been deposited into the Federation Account but were subsequently spent by the Federal Government without being distributed to the states
KaNo—
The Presidency and Oyo State Governor, Seyi Makinde, have engaged in a war of words over allegations that the Federal Government is withholding N250bn in Nigeria LNG Limited dividends meant for each of the 36 states until after the 2027 general elections.
The Presidency, on Sunday, dismissed the governor’s allegation as false and misleading, insisting that the amount being claimed exceeded the total dividends paid by the company to the Federation Account since it commenced operations.
However, Makinde maintained his position, accusing the Federal Government of failing to account for the distribution of NLNG dividends and demanding explanations over an alleged N9tn shortfall identified during a reconciliation exercise.
In a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency described Makinde’s claim as economically unrealistic and urged Nigerians to disregard it.
The controversy followed remarks made by Makinde, the presidential candidate of the Allied People’s Movement, during the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday.
Speaking at the event, Makinde alleged that the Federal Government had decided to delay the payment of N250bn in NLNG dividends to each state until after the presidential election.
“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?” the governor asked.
Makinde further alleged that the dividends had already been deposited into the Federation Account but were subsequently spent by the Federal Government without being distributed to the states.
He also claimed that President Bola Tinubu had assured governors that the funds would be released after the elections.
Reacting, Onanuga challenged the figures presented by Makinde, arguing that the alleged N250bn allocation to each of the 36 states would amount to N9tn, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government councils.
According to him, states are entitled to 26.72 per cent of distributable revenue under the Federation Account Allocation Committee formula.
He explained that for states to receive N9tn from NLNG dividends, the company would have needed to declare more than N33.68tn, equivalent to approximately $25bn, in a single payment.
“NLNG has never paid $25bn in dividends to the Federation Account in a single payout,” Onanuga stated.
The presidential spokesman disclosed that NLNG had paid approximately $21.5bn in dividends to the federation over 25 years, adding that less than $3bn had been received since Tinubu assumed office.
He maintained that the figures contradicted Makinde’s assertion that a single dividend payment worth N9tn was being withheld from state governments.
“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 stated.
Onanuga also criticised Makinde’s political conduct, alleging that the governor had increasingly resorted to misleading statements since declaring his intention to contest the presidency.
He recalled that Makinde had previously described the increased flow of Federation Account allocations to states, including Oyo, as voodoo.
The Presidency maintained that while the governor was constitutionally entitled to pursue his presidential ambition, he should avoid making allegations capable of misleading the public.
“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 added.
The Presidency consequently urged Nigerians to disregard the allegations, describing them as attempts to generate unnecessary public resentment against the Federal Government.
However, Makinde, in a counterstatement issued on Sunday through his Special Adviser on Media, Dr Sulaimon Olanrewaju, accused the Presidency of deliberately avoiding the central questions surrounding the alleged outstanding dividends.
The governor explained that the Nigeria Governors’ Forum, with the support of the Federal Government, had engaged a consultant to reconcile NLNG dividend payments and determine the amounts due to states and local governments.
According to him, the reconciliation exercise uncovered an estimated N9tn shortfall in payments owed to the subnational governments.
Makinde, who serves as the vice-chairman of the NGF, maintained that the Federal Government had accepted the findings of the exercise.
“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.
He argued that the Presidency’s reference to the cumulative dividends paid by NLNG failed to address whether states and local governments had received their statutory entitlements.
The governor consequently challenged the Federal Government to publish details of the disbursements and explain how the dividends received under the Tinubu administration were utilised.
“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?” he queried.
Makinde also rejected suggestions that his allegations were politically motivated, insisting that his statements were based on information available to the governors.
He maintained that he remained willing to provide additional clarification while urging the Presidency to address the financial questions raised rather than resorting to personal criticism.
The dispute has brought renewed attention to the management and distribution of revenues generated from Nigeria’s investment in NLNG, in which the Federal Government holds a 49 per cent stake.
In July, NLNG Chief Executive Officer, Adeleye Falade, disclosed that the company had distributed $47.2bn in dividends to its shareholders, including the Federal Government, from cumulative revenue of $149.6bn since commencing operations.
Figures contained in the company’s Facts and Figures report showed that annual dividend payments to the Nigerian National Petroleum Company Limited, its government shareholder, included $1.39bn in 2014, $722.44m in 2021 and $1.10bn in 2022.
Meanwhile, available allocation figures indicated that the 36 states received N4.83tn from the Federation Account between January and June, with Oyo State receiving N147.32bn during the period.
The disagreement comes amid growing political activities ahead of the 2027 elections.
Makinde formally declared his presidential ambition on May 14 during a rally in Ibadan under the platform of the APM, following the party’s alliance with a faction of the Peoples Democratic Party led by Kabiru Turaki.
With both sides maintaining opposing positions, the controversy has raised questions about transparency in the management of NLNG dividends and the distribution of federally collected revenues among the three tiers of government.
