The Presidency has rejected a claim by Oyo State Governor Seyi Makinde that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited dividends allegedly due to each of Nigeria’s 36 states until after the 2027 general elections.
Makinde made the allegation during a 2027 Budget Stakeholders’ Consultative Engagement in Ibadan, where he said Oyo State had already identified projects it intended to finance with the expected funds. He argued that delaying the payment was affecting development plans in the states.
Responding on Sunday, October 18, the Presidency described the claim as false, arguing that the figures cited by the governor did not correspond with the scale of NLNG’s historical dividend payments.
In a statement signed by presidential spokesman Bayo Onanuga, the Presidency calculated that paying ₦250 billion to each of Nigeria’s 36 states would require ₦9 trillion for the states alone.
It further argued that, under the existing Federation Account sharing formula, states collectively receive 26.72 percent of distributable statutory revenue. Official government records confirm that the standard vertical allocation formula assigns 52.68 percent to the Federal Government, 26.72 percent to states and 20.60 percent to local governments.
On that basis, the Presidency said the total NLNG dividend required for the states’ share alone to amount to ₦9 trillion would exceed ₦33 trillion.
It maintained that NLNG had never made a dividend payment of that size to the Federation in a single distribution.
Historical NLNG figures provide useful context to the disagreement.
In its 2024 Facts and Figures report, NLNG said it had paid more than $44 billion in dividends to its shareholders since operations began, with 49 percent accruing to the Federal Government through NNPC Limited’s shareholding.
The Presidency said approximately $21.5 billion had gone to the Federation over a 25-year period and that less than $3 billion had been realised since President Bola Tinubu assumed office. The Presidency presented that specific recent figure in its response.
Makinde, however, maintains that states are awaiting the dividend distribution and that the delay is preventing them from carrying out planned infrastructure and economic projects.
The disagreement is important because Federation Account revenues remain a major source of funding for state governments across Nigeria.
Any unusually large distribution could significantly affect state budgets, infrastructure projects and social programmes. At the same time, disputes involving trillions of naira require clear financial records so Nigerians can distinguish political claims from the revenue actually available for distribution.
The controversy is also unfolding ahead of the 2027 general elections, increasing the likelihood that fiscal issues will become part of wider political debate.
For citizens, the most useful resolution would be transparent publication of the relevant NLNG receipts and Federation Account records showing what was received, what is available for distribution, and how any proceeds are to be shared.
The Federal Ministry of Finance already maintains monthly FAAC allocation records, providing an official basis for tracking revenue distributed among the three tiers of government.
As the political disagreement continues, the figures — rather than campaign rhetoric from either side — will ultimately provide the clearest basis for determining what states are entitled to receive.
