Presidency, Makinde Clash Over Alleged ₦9trn NLNG Dividend Shortfall
The Presidency and Oyo State Governor Seyi Makinde have traded accusations over an alleged ₦9 trillion shortfall in Nigeria LNG Limited (NLNG) dividends due to states and local governments, with the governor insisting that the Federal Government must account for the funds.
The Presidency, on Sunday, dismissed Makinde’s claim that the Federal Government was withholding ₦250 billion in NLNG dividend windfall for each of the 36 states until after the 2027 general elections, describing the allegation as false and economically implausible.
Makinde, who is also the presidential candidate of the Allied Peoples Movement (APM), had alleged that the funds were being withheld despite states having identified projects for which they intended to use the money.
In a statement, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, argued that distributing ₦250 billion to each of the 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government areas.
According to the Presidency, under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue.
It said that for the states’ share alone to reach ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to about $25 billion, in a single declaration.
The Presidency maintained that NLNG had never paid $25 billion in dividends in one payout, adding that the company had paid approximately $21.5 billion to the Federation over the past 25 years, with less than $3 billion realised since Tinubu assumed office.
It consequently urged Nigerians to disregard Makinde’s allegation, accusing the governor of making misleading claims since embarking on his presidential ambition.
Makinde Demands Explanation Over Alleged Shortfall
However, Makinde, through his Special Adviser on Media, Dr Sulaimon Olanrewaju, rejected the Presidency’s response, insisting that it had failed to address the central issue of how NLNG dividend payments were distributed among the three tiers of government.
The governor’s camp said a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, had identified an alleged shortfall of about ₦9 trillion due to states and local governments.
According to Olanrewaju, the report remains in the custody of both the Federal Government and the NGF, adding that the governor’s position was based on the findings of the exercise.
He challenged the Presidency to explain how much NLNG paid in dividends, how much was credited to the Federation Account and the amounts subsequently allocated to states and local governments.
The governor’s aide also questioned what happened to the approximately $3 billion in dividends the Presidency said had been received under the current administration.
He maintained that the issue was not simply the total dividends NLNG had paid over its lifetime, but whether the relevant funds had been properly distributed to the intended beneficiaries.
Campaign Accuses Tinubu Presidency of Evasion
The Makinde-Daura Presidential Campaign Organisation also dismissed the Presidency’s response, accusing the Federal Government of evading the substance of the allegation through what it described as misleading figures and personal attacks on the governor.
In a statement signed by its Director of Communications, Richard Nnanna Ihediwa, the campaign challenged Tinubu to confirm whether the dividends in question had been paid to the states.
It also demanded the publication of relevant NLNG dividend receipts, FAAC decisions and official communications showing the amounts received, the sums approved for distribution and the timing of payments to the states.
The organisation argued that NLNG’s cumulative dividend payments over 25 years could not, on their own, establish whether a specific payment had been delayed, approved for distribution or withheld.
“The question is not whether ₦9 trillion was ever paid in a single transaction, but the amount that is actually under discussion as can be established by the official records,” the campaign said.
It further questioned whether the Presidency had the constitutional authority to withhold funds accruing to states under the federation’s revenue-sharing arrangements.
The campaign stood by Makinde’s description of the Tinubu administration’s economic management as a “voodoo economy”, arguing that official economic figures did not adequately reflect the difficulties experienced by Nigerians.
It also accused the ruling All Progressives Congress (APC) of being unsettled by Makinde’s presidential ambition and the reception of his RESET NIGERIA agenda.
Financial Records at the Centre of Dispute
The disagreement has now centred on the reconciliation report cited by Makinde’s camp and the financial records required to establish the amount of NLNG dividends received, approved for distribution and actually paid to the respective tiers of government.
While the Presidency insists that the governor’s claim is inconsistent with NLNG’s historical dividend payments, Makinde’s camp maintains that the government must provide a detailed account of the specific funds under discussion.
The dispute comes as political activities gather momentum ahead of the 2027 general elections, with Makinde seeking to position himself as an alternative to Tinubu.
The actual amount, status and distribution of the alleged outstanding dividends remain the central issues requiring clarification through the relevant official financial records.
