The Presidency and Oyo State Governor Seyi Makinde have disagreed over allegations that the Federal Government is withholding ₦250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends meant for each state of the federation.
While the Presidency dismissed the allegation as false, Makinde and his presidential campaign organisation insisted that questions surrounding the distribution of the funds remained unanswered.
The disagreement followed Makinde’s claim that the Federal Government had delayed the release of the money until after the 2027 general elections, despite the funds allegedly being meant for states to finance development projects.
Makinde, who is the presidential candidate of the Allied Peoples Movement (APM), reportedly made the allegation during the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan.
The governor questioned why the government would delay the release of the funds when states needed money to implement projects that could improve economic activities and the welfare of residents.
According to him, Oyo State had already identified projects that would expand its economy but was allegedly informed that the money would not be released until after the elections.
He questioned whether the 2027 elections were more important than the needs of Nigerians.
Presidency Dismisses Makinde’s Allegation
In a statement issued by the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, the Presidency described Makinde’s claim as false and urged Nigerians to disregard it.
The Presidency argued that the figures presented by the governor did not align with the known history of NLNG dividend payments into the Federation Account.
It 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 (FCT) and the 774 local government areas.
According to the Presidency, states receive 26.72 per cent of distributable revenue from the Federation Account Allocation Committee (FAAC).
It stated that for the states alone to receive ₦9 trillion under the existing revenue-sharing formula, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to approximately $25 billion, in a single declaration.
The Presidency maintained that NLNG had never paid $25 billion in dividends to the Federation Account in one payment.
It further stated that NLNG had paid approximately $21.5 billion in dividends to the federation over the past 25 years, with less than $3 billion received since Tinubu assumed office.
The statement argued that the allegation that the Federal Government was withholding a single payment larger than NLNG’s entire historical dividend distribution was inconsistent with available figures.
The Presidency also accused Makinde of making misleading statements since declaring his presidential ambition, urging him to provide verifiable facts rather than politicising the management of public funds.
It noted that the governor was entitled to pursue his presidential ambition but should avoid statements capable of misleading Nigerians and creating unnecessary tension between the Federal Government and state authorities.
Makinde Challenges FG to Explain Alleged ₦9tn Shortfall
However, Makinde rejected the Presidency’s explanation and insisted that the dispute was not simply about whether NLNG had ever paid $25 billion in dividends in one transaction.
In a statement signed by his Special Adviser on Media, Dr Sulaimon Olanrewaju, the governor challenged the Federal Government to explain how NLNG dividends paid into the Federation Account had been distributed among the different tiers of government.
Makinde’s camp maintained that a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the support of the Federal Government, had reportedly identified a shortfall of about ₦9 trillion owed to states and local governments.
According to the governor’s media aide, the report remains in the custody of both the Federal Government and the NGF.
The statement added that Makinde, who is the incumbent vice-chairman of the NGF, had a basis for raising questions about the handling and distribution of the funds.
The governor’s camp also questioned the Presidency’s figures on the total dividends received from NLNG, particularly the amount allegedly paid into the Federation Account under the current administration.
Although it acknowledged that the Presidency had provided information on NLNG’s cumulative dividend payments, Makinde’s team argued that the government had not explained how the money was shared.
It raised questions about whether states and local governments had received their appropriate allocations, how much each tier of government had collected and the method used to calculate the payments.
The campaign also demanded an explanation of what happened to the approximately $3 billion in NLNG dividends that the Presidency said had been received since Tinubu became president.
Makinde’s aide insisted that these questions were central to the controversy and urged the Federal Government to address them directly.
He maintained that the governor would provide further clarification on the matter and urged the Presidency to focus on the substance of the allegations.
Campaign Accuses Tinubu’s Government of Avoiding Accountability
The Makinde-Daura Presidential Campaign Organisation also rejected the Presidency’s denial, accusing the Tinubu administration of avoiding the main issues raised by the Oyo State governor.
In a statement signed by its Director of Communications, Richard Nnanna Ihediwa, the organisation argued that the Federal Government had focused on historical dividend figures instead of explaining whether the funds under discussion had been received, approved for distribution or paid to the states.
The campaign challenged President Tinubu to tell Nigerians directly whether the alleged dividends had been released to the states rather than engaging in what it described as personal attacks against Makinde.
It argued that demanding accountability for public funds was a legitimate right in a democracy and that Makinde’s presidential ambition did not remove his right to question the Federal Government.
The organisation also questioned whether the Presidency had any constitutional authority to withhold funds legally accruing to state governments.
It called on the Federal Government to publish relevant NLNG dividend receipts, FAAC decisions and official communications showing the amounts received, the sums approved for distribution and the proposed dates for payment to the states.
According to the campaign, Nigerians deserve clear information on how much NLNG paid in dividends during the period under discussion, the amount credited to the Federation Account and the amount approved for distribution to states.
The organisation further argued that the total dividends paid over 25 years could not, by itself, resolve questions about a particular payment or alleged shortfall.
It maintained that only official financial records could establish whether the funds had been received, approved for distribution, delayed or withheld.
The campaign therefore insisted that the Presidency’s argument about the ₦9 trillion calculation did not settle the dispute over the alleged ₦250 billion allocation to each state.
Makinde’s Camp Accuses Presidency of Running a ‘Voodoo Economy’
The campaign organisation also defended Makinde’s description of the Tinubu administration’s economic management as a “voodoo economy.”
It alleged that government figures suggesting improvements in the economy did not reflect the difficult living conditions faced by many Nigerians.
The organisation claimed that the administration relied on misleading information and propaganda, while insisting that Makinde’s campaign was focused on providing an alternative economic direction under his proposed RESET NIGERIA agenda.
It further alleged that the growing acceptance of Makinde’s presidential campaign had unsettled the ruling All Progressives Congress (APC), although it provided no independent evidence in the statement to substantiate that claim.
The Presidency, however, has maintained that the allegation of a withheld ₦250 billion NLNG dividend for each state is false.
The central issue remains the need to establish, through official financial records, the amount of NLNG dividends received during the period in question and how the funds were distributed among the federal, state and local governments. The competing claims have yet to be resolved by the financial documents cited in the reports.
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