Governor Seyi Makinde of Oyo State has asked the President Bola Tinubu administration to explain how it disbursed the nearly $3 billion received as dividends from the Nigeria Liquefied Natural Gas Limited (NLNG) since 2023.
Mr Makinde was responding to the presidency’s rejection of his claim that the federal government was withholding NLNG dividends due to states and local governments, resulting in a shortfall of about N9 trillion.
Mr Makinde had, at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, alleged that each state was supposed to get N250 billion.
Mr Makinde said the funds would not be released until after the 2027 elections.
“Each state was supposed to get N250 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?”
He further claimed the federal government had spent the money.
Reacting in a statement on Sunday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, described the governor’s claim as false and urged the public to disregard it.
Mr Onanuga said the claim defies basic logic and economic reality.
He explained that even as a one-off distribution, N250 billion to each of the 36 states amounts to N9.0 trillion, excluding the Federal Government, the FCT, and the 774 local councils.
Under the Federation Account Allocation Committee (FAAC) formula, it said, states receive 26.72 per cent of the distributable Federation Account revenue.
“For the states’ share alone to reach N9 trillion, total NLNG dividends paid into the Federation Account would have to exceed N33.68 trillion (about $25 billion) in a single declaration. NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the statement said.
Mr Onanuga added that 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 Tinubu assumed office.
But in a counter-statement on Sunday, Mr Makinde’s Special Adviser on Media, Sulaimon Olanrewaju, said the governor stands by his claim, adding that the presidency’s response failed to address the crux of the matter.
“The response sidestepped the central issue: the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, engaged a consultant to reconcile NLNG dividend payments,” Mr Olanrewaju said.
“The exercise identified a shortfall of about N9 trillion due to states and local governments. The Federal Government accepted the findings.
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“The report remains in the custody of both the Federal Government and the NGF. We trust the Presidency will not deny its existence,” he said.
He said the presidency admitted that NLNG paid $21.5 billion in dividends into the federation account since inception, including $3 billion received under the current administration, but did not explain how the funds were disbursed.
“Have states and local governments received their shares? How much did they receive, and how were those amounts calculated? What happened to the $3 billion received under this administration?” Mr Olanrewaju asked.
He said Mr Makinde “conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis,” and is ready to provide further clarification, while urging the presidency to address the substance of the matter.
NLNG produces and exports liquefied natural gas and allied products. The company is jointly owned by the Nigerian National Petroleum Company Limited (NNPC Ltd), Shell, TotalEnergies and Eni.
