FG says claim of withheld payments is false, cites NLNG’s lifetime dividend record; Oyo governor demands disclosure of funds received and shared among states and local governments……
The Presidency and Oyo State Governor Seyi Makinde have renewed their dispute over alleged unpaid Nigeria Liquefied Natural Gas (NLNG) dividends, with both sides challenging each other to provide evidence of how the funds were received and distributed.
While the Presidency has dismissed Makinde’s claim that the Federal Government is withholding N250 billion meant for each state, the governor has insisted that a reconciliation exercise identified an alleged N9 trillion shortfall in payments due to states and local governments.
The dispute escalated on Sunday after the Presidency described Makinde’s allegation as false, arguing that the amount he claimed was being withheld was inconsistent with NLNG’s dividend payment history.
Makinde, who is the presidential candidate of the Allied Peoples Movement (APM), had alleged that the Federal Government was delaying the release of N250 billion to each state until after the 2027 general elections.
He made the allegation at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday.
The governor said his administration had identified projects that could expand Oyo State’s economy but was unable to proceed because the expected funds had allegedly been delayed.
In response, the Presidency urged Nigerians to disregard the claim, maintaining that the figures did not support the allegation of a withheld dividend windfall.
In a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency argued that distributing N250 billion to each of the 36 states would amount to N9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government areas.
It said that, under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue.
According to the Presidency, for the states’ share alone to reach N9 trillion, NLNG would have had to pay more than N33.68 trillion, equivalent to about $25 billion, into the Federation Account in a single dividend declaration.
The statement added that NLNG had never made such a payment in one transaction.
“NLNG has paid approximately $21.5 billion in dividends to the Federation over the last 25 years, with less than $3 billion realised since President Bola Ahmed Tinubu assumed office,” the Presidency said.
It maintained that the claim of a single dividend payment exceeding the company’s entire historical contribution to the Federation, which was allegedly being withheld, did not align with the available figures.
The Presidency also accused Makinde of making misleading statements since declaring his presidential ambition, urging him to exercise restraint in his public comments.
It further recalled the governor’s previous description of financial inflows from the Federation Account to states as a “voodoo” economy, arguing that his latest allegation risked misleading the public.
Makinde demands explanation for alleged N9tn shortfall
The governor, however, rejected the Presidency’s explanation, insisting that the dispute was not simply about whether NLNG had paid N9 trillion in a single transaction.
In a statement issued by his Special Adviser on Media, Sulaimon Olanrewaju, Makinde challenged the Federal Government to explain how the dividends received from NLNG had been allocated among the beneficiaries.
The governor’s aide said the allegation was based on a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the support of the Federal Government, to establish the status of NLNG dividend payments.
According to the statement, the exercise identified an alleged shortfall of about N9 trillion owed to states and local governments, adding that the Federal Government had 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 governor’s camp also cited Makinde’s position as the incumbent vice-chairman of the NGF in defending the basis of his claim.
It questioned the Presidency’s reference to NLNG’s cumulative dividend payments of approximately $21.5 billion over 25 years, arguing that the figure did not establish how much had been distributed to the various tiers of government.
The statement asked whether states and local governments had received their respective shares, how much each tier had received and the method used to calculate the allocations.
It also sought clarification on the dividends received under the Tinubu administration, which the Presidency put at less than $3 billion.
Makinde’s aide maintained that the government had yet to address the central issue of how the funds were disbursed, insisting that historical payment figures alone could not settle questions about specific amounts allegedly due to the states.
The governor’s camp further defended his public statements, saying he was prepared to provide additional clarification on the allegations.
Campaign organisation challenges Tinubu to publish records
The Makinde-Daura Campaign Organisation also joined the dispute, dismissing the Presidency’s response as an attempt to divert attention from the question of whether the alleged dividends had been paid to the states.
In a statement signed by its Director of Communications, Richard Nnanna Ihediwa, the campaign challenged President Bola Tinubu to confirm whether the payments had been made rather than focus on the governor’s political ambition or the total dividends NLNG had paid over the years.
The organisation argued that the Presidency’s figures did not resolve the question of whether particular payments had been received, approved for distribution or delayed.
It called on the Federal Government to publish NLNG dividend receipts, relevant FAAC decisions and official communications showing the amounts received, the sums approved for distribution and the timing of payments to the states.
The campaign also questioned whether the Federal Government had the constitutional authority to withhold funds accruing to states under the Federation Account.
It maintained that determining the actual amount in dispute required access to financial records showing the dividends paid during the period under consideration and how the proceeds were shared.
According to the organisation, the Presidency’s argument that NLNG had never paid $25 billion in a single dividend transaction did not, by itself, answer whether a particular payment had been withheld.
“The question is not whether N9 trillion was ever paid in a single transaction, but the amount that is actually under discussion as can be established by the official records,” the statement said.
The campaign accused the Presidency of avoiding these questions and reiterated its support for Makinde’s demand for greater transparency in the management of public funds.
It also defended the governor against accusations of spreading misinformation, describing his campaign as issue-based and presenting him as an alternative to Tinubu ahead of the 2027 elections.
The organisation further alleged that the growing attention surrounding Makinde’s presidential bid had unsettled the ruling party, although it did not provide evidence for that claim.
The dispute has now shifted beyond the initial allegation of delayed payments to a broader disagreement over the records needed to establish how much NLNG has paid into the Federation Account, how the proceeds were allocated and whether any sums remain outstanding to states and local governments.
While the Presidency has relied on NLNG’s cumulative dividend history and the revenue-sharing formula to reject Makinde’s figures, the governor’s camp insists that the relevant payment and distribution records must be made public to resolve the matter.
