Oyo State Governor, Seyi Makinde, has challenged the Federal Government to explain how nearly $3 billion received in dividends from the Nigeria Liquefied Natural Gas Limited (NLNG) since 2023 was distributed among the three tiers of government.
Makinde’s challenge followed the Presidency’s rejection of his allegation that the Federal Government was withholding NLNG dividend payments due to states and local governments, reportedly amounting to about ₦9 trillion.
The governor, through his Special Adviser on Media, Sulaimon Olanrewaju, maintained that his position was based on a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the support of the Federal Government.
According to Makinde’s aide, the exercise identified an alleged shortfall of approximately ₦9 trillion owed to states and local governments. He added that the Federal Government had accepted the findings and that the report remained in the custody of both the Federal Government and the NGF.
“The response sidestepped the central issue: the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, engaged a consultant to reconcile NLNG dividend payments,” Olanrewaju said.
He argued that the Presidency’s response failed to provide a detailed explanation of how the dividend proceeds had been shared among the federal, state and local governments.
The controversy followed Makinde’s remarks at the 2027 Budget Stakeholders’ Consultative Engagement in Ibadan, where he claimed that each state was expected to receive about ₦250 billion from the NLNG dividends. He also alleged that the release of the funds had been delayed until after the 2027 general election.
However, the Presidency, through its Special Adviser on Information and Strategy, Bayo Onanuga, dismissed the governor’s claim as false, arguing that the figures did not align with the established revenue-sharing formula.
Onanuga explained that distributing ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion. Based on the Federation Account allocation formula, he said the total dividends required for the states’ share alone to reach that amount would exceed ₦33.68 trillion, or approximately $25 billion, in a single payment.
The presidential spokesman 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 realised since President Bola Tinubu assumed office.
In his response, Makinde’s aide questioned how the funds received under the current administration had been disbursed and demanded clarification on the amounts allocated to states and local governments.
“Have states and local governments received their shares? How much did they receive, and how were those amounts calculated? What happened to the $3 billion received under this administration?” he asked.
Olanrewaju maintained that the governor was prepared to provide further clarification on the matter, while urging the Presidency to address the alleged reconciliation report and provide a detailed account of the dividend distributions.
The dispute has brought renewed attention to the management and distribution of NLNG dividend revenues, with both sides maintaining opposing positions on the alleged ₦9 trillion shortfall and the amount due to subnational governments.
