The Presidency has rejected claims by Oyo State Governor Seyi Makinde that the Federal Government is withholding ₦250 billion in dividends from Nigeria Liquefied Natural Gas (NLNG) meant for each of Nigeria’s 36 states.
Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, described the allegation as false in a statement issued on Sunday, October 18, 2026.
Makinde had raised the issue during the 2027 Budget Stakeholders’ Consultative Engagement at the University of Ibadan, alleging that the Federal Government intended to delay the release of the funds until after the 2027 general elections.
The governor said Oyo State had already identified projects that could support economic growth and questioned why the funds would be withheld when they could be used for development.
He also alleged that the Federal Government had spent the money instead of distributing the states’ shares.
Presidency questions the figures
Responding, Onanuga argued that the amount cited by Makinde did not align with NLNG’s historical dividend payments or Nigeria’s revenue-sharing arrangements.
He noted that paying ₦250 billion to each of the 36 states would amount to ₦9 trillion for the states alone, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government areas.
Under the Federation Account Allocation Committee (FAAC) revenue-sharing formula cited by the Presidency, states receive 26.72 per cent of distributable revenue.
Onanuga said the states’ combined share could reach ₦9 trillion only if total NLNG dividends paid into the Federation Account exceeded ₦33.68 trillion, equivalent to approximately $25 billion, in a single declaration.
According to the Presidency, NLNG has never made a dividend payment of that size to the Federation Account.
Onanuga added that the company 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 in May 2023.
He argued that the amount allegedly being withheld would therefore exceed the company’s cumulative dividend payments to the Federation over its entire history.
The Presidency urged Nigerians to disregard Makinde’s allegation, accusing the governor of making misleading statements as he pursues his political ambitions ahead of the 2027 elections.
Questions remain over the alleged funds
The dispute centres on whether additional NLNG dividend proceeds were reconciled and whether any outstanding amount is due for distribution to states.
While the Presidency has challenged the financial basis of Makinde’s claim, its public statement did not provide a transaction-by-transaction breakdown of the dividend payments or a detailed reconciliation of the specific funds the governor referenced.
Makinde’s allegation and the government’s response have therefore placed renewed attention on the need for transparent reporting of NLNG dividend receipts and their distribution through the Federation Account.
A detailed account of the payments, allocations and any outstanding balances would help clarify the disagreement and establish whether funds remain due to the states.
