The Presidency says distributing ₦250 billion to each of Nigeria’s 36 states would require more than ₦33.68 trillion in total NLNG dividends, far above the company’s reported historical payouts.
The Presidency has rejected Oyo State Governor Seyi Makinde’s allegation that the Federal Government is withholding ₦250 billion in Nigeria LNG (NLNG) dividends for each state, describing the claim as false and inconsistent with the company’s reported dividend history.
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, made the position known in a statement on Sunday, urging Nigerians to disregard the allegation.
The response followed remarks by Makinde at the 2027 Budget Stakeholders’ Consultative Engagement in Ibadan on Friday, where the governor said the delay in releasing the funds was affecting states’ development plans.
Makinde alleged that the Federal Government had decided to postpone payment until after the 2027 general election, despite states having identified projects to be financed with the money.
“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?” the governor said.
Presidency challenges Makinde’s ₦250bn NLNG dividend claim
Onanuga argued that the amount Makinde said each state was entitled to would translate into a combined payment of ₦9 trillion for the 36 states alone.
He said the calculation excluded the Federal Government, the Federal Capital Territory and the 774 local government areas.
According to the presidential spokesman, states receive 26.72 per cent of distributable revenue under the Federation Account Allocation Committee (FAAC) revenue-sharing formula.
For the states’ collective share to reach ₦9 trillion, Onanuga said NLNG would have needed to pay more than ₦33.68 trillion, equivalent to approximately $25 billion, into the Federation Account in a single dividend declaration.
He maintained that NLNG had never made a dividend payment of that size to the Federation Account in a single payout.
“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,” Onanuga said.
The Presidency’s argument rests on the scale of the alleged payment and the company’s reported historical distributions. However, its statement does not, by itself, provide an independently audited reconciliation of the specific funds Makinde says are due to the states.
NLNG dividends: Presidency cites $21.5bn historical payments
Onanuga said NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since Tinubu assumed office.
The figures, as presented by the Presidency, were intended to challenge the suggestion that a single dividend payout could generate ₦250 billion for every state.
Makinde’s allegation, meanwhile, was that the dividends had been paid into the Federation Account, after which the funds were allegedly spent by the Federal Government instead of being distributed to the states.
Reports of his remarks said the governor also referred to a consultancy and reconciliation exercise that had identified the amounts expected by each state. The Presidency’s response focused on the size of the claimed distribution and NLNG’s reported payment history.
The two positions therefore raise a question that goes beyond the headline figures: whether there is a specific reconciled dividend balance awaiting distribution, and, if so, what amount was established and what decision was taken on its release.
Neither the supplied statement from the Presidency nor the reports of Makinde’s remarks provide enough independently verified documentation to establish that reconciliation or confirm the precise amount, if any, currently outstanding.
Presidency accuses Makinde of politicising the dispute
Onanuga also criticised the governor’s public statements, accusing him of making misleading claims since embarking on his presidential bid.
“We expect Governor Makinde to be more measured in his public conduct and utterances,” he said, adding that the governor had chosen to play politics by making what the Presidency described as misleading claims rather than presenting verifiable facts.
He further accused Makinde of using unguarded statements to mislead citizens and create unnecessary hostility towards the Federal Government.
The dispute comes as political activity builds ahead of the 2027 general election. Makinde has framed the alleged delay as a development concern, arguing that the funds could support projects intended to expand Oyo State’s economy.
The Presidency, however, insists that the amount cited by the governor does not align with the company’s reported dividend history.
A detailed reconciliation of the relevant NLNG payments, the applicable revenue-sharing arrangements and any outstanding balances would help clarify the disagreement. Until such documentation is made public and independently examined, the allegation that the Federal Government is withholding ₦250 billion for each state remains disputed.
