The Presidency has challenged Oyo State Governor Seyi Makinde to provide verifiable evidence for his claim that the Federal Government is withholding ₦250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends meant for each of the 36 states.
The Presidency dismissed the allegation as false, arguing that the amount claimed was inconsistent with the Federation Account revenue-sharing formula and NLNG’s historical dividend payments.
In a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency said distributing ₦250 billion to each state would require a total of ₦9 trillion, excluding allocations to the Federal Government, the Federal Capital Territory (FCT) and the 774 local government areas.
According to Onanuga, states receive 26.72 per cent of distributable Federation Account revenue under the Federation Account Allocation Committee (FAAC) sharing formula.
He argued that for the 36 states to collectively receive ₦9 trillion, NLNG would have needed to declare dividends exceeding ₦33.68 trillion, equivalent to about $25 billion.
The Presidency maintained that such a payout was inconsistent with the company’s financial history, stating 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 in May 2023.
It further argued that NLNG had never made a single dividend payment of $25 billion to the Federation Account.
The dispute followed Makinde’s remarks at the 2027 Budget Stakeholders’ Consultative Engagement held at the University of Ibadan on Friday, October 16, where he accused the Federal Government of withholding dividend proceeds belonging to the states.
The governor alleged that the government had spent the funds and decided to postpone their release until after the 2027 general elections.
Makinde said his administration had already identified projects that would be financed with Oyo State’s expected allocation to stimulate 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?” he asked.
However, the Presidency rejected the allegation, insisting that the figures cited by the governor did not align with the revenue-sharing framework or NLNG’s historical dividend payments.
Onanuga also questioned the timing of Makinde’s comments, linking them to his reported presidential ambition ahead of the 2027 general election.
He accused the governor of making misleading statements about the Federal Government’s management of public revenue and recalled Makinde’s previous description of increased Federation Account allocations to states, including Oyo, as “voodoo”.
The Presidency acknowledged Makinde’s constitutional right to pursue his political ambition but urged him to support his public claims with verifiable evidence.
It also called on Nigerians to disregard the allegation, warning that unsubstantiated claims could mislead the public and create unnecessary tension between the Federal Government and citizens.
The dispute has raised questions about the figures being cited by both sides and the need for transparent financial records to establish whether any NLNG dividend proceeds remain outstanding to the states.
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