POLITICAL Economy

Presidency Rejects Makinde’s NLNG Dividend Claims

by admin on | 2026-10-19 10:57:39

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Presidency Rejects Makinde’s NLNG Dividend Claims

By Ahmad Sirajo Makama

The Presidency has urged Nigerians to disregard claims by Oyo State Governor, Seyi Makinde, that the Federal Government is withholding ₦250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends due to each state, describing the allegations as misleading and capable of creating unnecessary public disaffection against federal authorities.

In a statement issued on Sunday, the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, dismissed Governor Makinde’s claims as false, maintaining that the figures were inconsistent with established revenue-sharing arrangements and NLNG’s historical dividend payments.

The clarification followed remarks by Governor Makinde at the 2027 Budget Stakeholders’ Consultative Engagement held on Friday at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, where he alleged that the Federal Government had withheld funds meant for the states until after the 2027 general elections.

Refuting the allegations, the Presidency explained that distributing ₦250 billion to each of the 36 states would amount to ₦9 trillion, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government councils.

Onanuga noted that under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, states collectively receive 26.72 per cent of distributable Federation Account revenue, meaning that their share would require total NLNG dividend payments exceeding ₦33.68 trillion, approximately $25 billion, in a single declaration.

He maintained that NLNG had never made a single dividend payment of that magnitude into the Federation Account, describing the governor's figures as economically implausible.

Providing historical context, the presidential spokesperson disclosed that NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since President Bola Tinubu assumed office.

The Presidency further questioned how a single dividend payment allegedly being withheld could exceed the company's cumulative distributions over more than two decades, describing the claim as inconsistent with basic economic realities.

Mr Onanuga also criticised Governor Makinde's public statements on federal revenue allocations, recalling that the governor had previously described increased financial inflows from the Federation Account to states, including Oyo, as "voodoo."

He accused Makinde of allowing his presidential ambition to influence his public commentary on government finances, alleging that the governor had often resorted to politically motivated claims rather than verifiable information.

The presidential spokesperson said the Presidency expected more restraint and responsibility from the Oyo State governor, accusing him of turning "false and unguarded statements into a recurring feature of his political engagements."

While acknowledging Makinde's constitutional right to pursue his presidential ambition, Mr Onanuga cautioned against the dissemination of what he described as "falsehoods and disinformation in the course of political campaigns".

The Presidency maintained that public discussions about Federation Account revenues and allocations should be guided by verifiable financial records rather than politically motivated assertions capable of misleading Nigerians and undermining public confidence in federal institutions.

Makinde's Claims

Governor Seyi Makinde had alleged that the Federal Government spent Nigeria Liquefied Natural Gas (NLNG) dividends meant for distribution to states, claiming that each state was entitled to ₦250 billion but that payment had been deferred until after the 2027 general elections.

Makinde also alleged that his administration had already identified strategic projects to be financed through Oyo State’s expected allocation, expressing concern that the alleged delay would undermine development planning and economic growth.

“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.