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FG Faults Makinde’s N250bn NLNL Dividend Claim
The Presidency has dismissed claims by Oyo State Governor, Seyi Makinde, that the Federal Government is withholding N250 billion in NLNG dividends meant for each state of the federation.
Governor Makinde had alleged at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, that the funds had been spent and 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?” Makinde said.
But in a statement on Saturday, Special Adviser to the President on Information and Strategy, Bayo Onanuga, described the claim as false and economically illogical.
According to the Presidency, Makinde’s figure collapses under basic fiscal arithmetic.
If N250 billion were to be paid to each of the 36 states alone, the total payout would amount to N9 trillion, excluding allocations to the Federal Government, the FCT and the 774 local government councils.
Under the Federation Account Allocation Committee, FAAC, sharing formula, states collectively receive 26.72 percent of distributable Federation Account revenue.
By implication, for states to get N9 trillion as NLNG dividends alone, the total NLNG dividend inflow into the Federation Account in a single declaration would have to exceed N33.68 trillion, about $25 billion.
Historical records show NLNG has never paid $25 billion in a single payout.
The Presidency disclosed that NLNG has paid approximately $21.5 billion in dividends to the Federation in its 25-year history, with less than $3 billion realised since President Bola Ahmed Tinubu assumed office in 2023.
“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 said.
He added that under the law, all Federation Account revenues, including NLNG dividends, are managed and shared transparently through FAAC among the three tiers of government, and cannot be unilaterally withheld by the Federal Government.
The Presidency urged the public to disregard the claim, describing it as disinformation capable of stoking disaffection against federal authorities, and advised Governor Makinde to be more measured in his public utterances as he pursues his presidential ambition.
