Oyo State Governor Seyi Makinde has challenged the Presidency to explain how Nigeria LNG Limited (NLNG) dividends paid into the Federation Account were distributed, insisting that a reconciliation exercise identified about ₦9 trillion due to states and local governments.
The dispute follows the Presidency’s rejection of Makinde’s claim that the Federal Government was withholding ₦250 billion for each state, describing the allegation as false.
Makinde raised the issue at the 2027 Budget Stakeholders’ Consultative Engagement at the University of Ibadan, alleging that the funds would not be released until after the 2027 general elections.
He said the money could have financed projects to expand Oyo State’s economy.
“Each state was supposed to get ₦250 billion. We had already identified projects that would expand Oyo State’s economy,” he said.
However, presidential spokesman Bayo Onanuga argued that the figures did not add up.
He said allocating ₦250 billion to each of the 36 states would amount to ₦9 trillion and require more than ₦33.68 trillion in total NLNG dividends under the states’ 26.72 per cent share of distributable Federation Account revenue.
Onanuga also said NLNG had never paid $25 billion in dividends into the Federation Account in a single declaration.
According to him, the company had paid $21.5 billion in dividends since inception, including $3 billion received under the current administration.
In a response issued through his Special Adviser on Media, Sulaimon Olanrewaju, Makinde argued that the Presidency had failed to address the central issue.
He said a reconciliation exercise commissioned by the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, identified a shortfall of about ₦9 trillion due to states and local governments.
The statement added that the Federal Government accepted the findings and that the report remained in the custody of both the government and the NGF.
Makinde’s camp challenged the Presidency to clarify whether states and local governments had received their shares, how much was distributed and how the payments were calculated.
It also asked what happened to the $3 billion in NLNG dividends reportedly received under the current administration.
“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis,” the statement said.
The governor’s camp said it was ready to provide further clarification and urged the Presidency to address the substance of the dispute.
The disagreement has placed the focus on the reconciliation report, the calculation of the alleged shortfall and the distribution of NLNG dividend revenue.
While the Presidency has rejected the allegation that funds are being withheld, Makinde insists that the findings of the reconciliation exercise require a detailed public explanation.