Presidency Faults Makinde’s Claim On N250bn NLNG Dividends

The Presidency has dismissed as false claims by Governor Seyi Makinde of Oyo State that the Federal Government is withholding N250 billion in NLNG dividends for each state of the Federation.

Makinde had claimed at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, that the funds would not be released until after the 2027 elections, and that the Federal Government had spent the money.

“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?” the governor was quoted as saying.

In a statement on Sunday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said Makinde’s claim should be disregarded.

“Governor Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded,” Onanuga said.

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, states receive 26.72% 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,” he said.

According to the Presidency, NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.

“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 Ahmed Tinubu assumed office. Therefore, any claim that a single payout exceeds the company’s entire lifetime distribution to the Federation — and is being withheld — defies basic logic and economic reality,” Onanuga added.

He said Governor Makinde should be more measured in his public conduct, accusing him of turning false claims into an art form since embarking on his presidential bid.

“He once described the huge financial flow from the federation account to states, including Oyo, as ‘voodoo’. Under Nigerian law, Governor Makinde is free to pursue his presidential ambition. He should desist from making falsehoods and disinformation the hallmarks of his campaign,” the statement said.

The Presidency urged the public to disregard the claims, saying they only mislead citizens and stoke disaffection against Federal authorities.