NLNG Dividend Dispute Deepens as Makinde Demands Records of Payments to States

The dispute between the Presidency and Oyo State Governor Seyi Makinde over alleged unpaid Nigeria LNG Limited (NLNG) dividends has shifted towards questions of financial transparency, with the governor’s camp demanding records showing how the funds received by the Federation Account were distributed.

Makinde has alleged that the Federal Government is withholding ₦250 billion meant for each of Nigeria’s 36 states until after the 2027 general elections. The Presidency has rejected the allegation, describing it as false and arguing that the amount claimed does not correspond with NLNG’s historical dividend payments.

The disagreement intensified after the Presidency’s spokesman, Bayo Onanuga, said on Sunday that distributing ₦250 billion to each state would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government areas.

Onanuga explained that states receive 26.72 per cent of distributable revenue under the Federation Account Allocation Committee (FAAC) formula. For the states’ combined share to reach ₦9 trillion, he argued, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, or about $25 billion, in a single declaration.

He added 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.

Makinde’s camp, however, insists that the central issue is not whether NLNG has made a single payment of ₦9 trillion, but whether money identified as due to states and local governments has been fully accounted for and distributed.

In a response issued through his Special Adviser on Media, Dr Sulaimon Olanrewaju, the governor challenged the Presidency to explain how the dividends received by the Federation Account had been shared among the three tiers of government.

Olanrewaju said a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum, with the Federal Government’s support, had identified an alleged shortfall of about ₦9 trillion due to states and local governments. He claimed the findings had been accepted by the Federal Government and said the report remained with the government and the governors’ forum.

The governor’s aide questioned the Presidency’s reference to cumulative dividend payments over 25 years, arguing that historical totals alone did not establish how much was received during the period under dispute, what amount was approved for distribution or whether the relevant beneficiaries had received their allocations.

He called for the publication of NLNG dividend receipts, FAAC decisions and official communications showing the amounts received, approved for distribution and paid to the states.

The Makinde-Daura Campaign Organisation also rejected the Presidency’s response, accusing it of avoiding the substantive questions raised by the governor. The campaign maintained that the Federal Government should clarify the status of the funds rather than focus on the political implications of Makinde’s claims.

The controversy followed Makinde’s remarks at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, where he alleged that the expected funds would not be released until after the next general elections.

The dispute has taken on added political significance because Makinde, who is seeking the presidency under the Allied Peoples Movement, has become an increasingly prominent critic of the Tinubu administration ahead of the 2027 polls.

Beyond the political exchanges, the disagreement raises questions about the accounting and distribution of revenues paid into the Federation Account. While the Presidency disputes the scale of the alleged dividend shortfall, Makinde’s camp says the relevant financial records should be made public to establish what was received and how the funds were shared.

A reconciliation of the official receipts, distribution approvals and payment records would help clarify the competing claims and establish whether any outstanding amounts are due to states and local governments.

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