Oyo State Governor Seyi Makinde has challenged President Bola Tinubu’s administration to explain how approximately $3 billion in dividends from Nigeria Liquefied Natural Gas Limited (NLNG) received since 2023 was distributed among the federal, state and local governments.
Makinde’s demand follows the Presidency’s rejection of his allegation that the Federal Government was withholding NLNG dividend payments due to states and local governments, resulting in an estimated ₦9 trillion shortfall.
The governor, through his Special Adviser on Media, Sulaimon Olanrewaju, maintained that his claim was based on a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the Federal Government’s support.
According to Olanrewaju, the exercise identified about ₦9 trillion allegedly owed to states and local governments, adding that the Federal Government had accepted the findings.
He said the report remained in the custody of both the Federal Government and the NGF, urging the Presidency to address its findings rather than dismiss the governor’s claim.
“The response sidestepped the central issue,” Olanrewaju said, insisting that the dispute required clarification on how the dividend revenue had been allocated.
The governor’s aide questioned whether states and local governments had received their respective shares of the money, how much was paid to each tier of government and the formula used to determine the allocations.
He specifically demanded an explanation of what happened to the approximately $3 billion in NLNG dividends reportedly received under the Tinubu administration.
The Presidency had earlier dismissed Makinde’s allegation as false, arguing that the figures he cited were inconsistent with NLNG’s historical dividend payments and the revenue-sharing formula governing the Federation Account.
In a statement issued on Sunday, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, said NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since Tinubu assumed office.
Onanuga explained that distributing ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government areas.
He added that, under the Federation Account Allocation Committee revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue.
According to the Presidency, the states’ combined share could reach ₦9 trillion only if total NLNG dividends paid into the Federation Account exceeded ₦33.68 trillion, equivalent to about $25 billion, in a single declaration.
Onanuga maintained that NLNG had never made a dividend payment of that magnitude in one transaction and urged Nigerians to disregard Makinde’s allegation.
However, Makinde’s camp insists that the Presidency has yet to address the specific findings of the reconciliation exercise or provide a detailed breakdown of how the dividends received under the current administration were distributed.
The governor’s aide said Makinde remained ready to provide further clarification and called on the Federal Government to respond to the substantive questions surrounding the disputed payments.
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