Presidency Dismisses Makinde’s Claim Over N250bn NLNG Dividends

The Presidency has dismissed Oyo State Governor and Allied People’s Movement (APM) presidential candidate, Seyi Makinde’s claim that the Federal Government is withholding ₦250bn in Nigeria LNG dividends for each state until after the 2027 general election.

In a statement issued on Sunday, Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, described the allegation as false, urging Nigerians to disregard it.

Makinde reportedly made the claim at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday.

The governor alleged that each state was expected to receive ₦250bn from the NLNG dividends but that the Federal Government had postponed the payment until after the 2027 elections.

He was quoted as saying, “Each state was supposed to get ₦250 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?”

However, the Presidency disputed the allegation, arguing that the amount claimed would require an unprecedented dividend payment by NLNG.

According to the statement, a one-off distribution of ₦250bn to each of the 36 states would amount to ₦9tn, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government areas.

It explained that under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue.

The statement said the total NLNG dividends paid into the Federation Account would have to exceed ₦33.68tn, approximately $25bn, in a single declaration for the states to receive ₦9tn.

“The NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the Presidency stated.

It added that NLNG had paid approximately $21.5bn in dividends to the Federation over the past 25 years, with less than $3bn realised since Tinubu assumed office.

The Presidency argued that the alleged withheld payment was inconsistent with the company’s dividend history, describing the claim as economically implausible.

It also criticised Makinde’s public statements since he declared his presidential ambition, accusing him of making misleading claims instead of presenting verifiable facts.

The statement further recalled that the governor had previously described the substantial financial allocations from the Federation Account to states, including Oyo, as “voodoo”.

While acknowledging Makinde’s constitutional right to pursue his presidential ambition, the Presidency urged him to avoid spreading what it described as falsehoods and disinformation.

“We urge the public to disregard these unfounded claims, which serve only to mislead citizens and stoke needless disaffection against the Federal authorities,” the statement added.

The Federal Government owns 49 per cent of NLNG.

In July, NLNG Chief Executive Officer, Adeleye Falade, said the company had paid $47.2bn in dividends to all its shareholders, including the Federal Government, from revenue of $149.6bn since it began operations.

According to NLNG’s Facts and Figures report, annual dividend payments to the Nigerian National Petroleum Company Limited, its government shareholder, stood at $1.39bn in 2014, $722.44m in 2021 and $1.10bn in 2022.

Meanwhile, the 36 states reportedly received ₦4.83tn from the Federation Account between January and June, with Oyo State receiving ₦147.32bn.

Makinde declared his presidential ambition on May 14 at a rally in Ibadan under the APM, following the party’s alliance with a faction of the Peoples Democratic Party led by Kabiru Turaki.

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