The Presidency has clarified Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in NLNG dividends for each state of the Federation.
At the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, Governor Makinde claimed the funds would not be released until after the 2027 elections
. He allegedly claimed that the Federal Government had spent the money.
“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?” the governor said.
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Governor Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded.
Under the Federation Account Allocation Committee (FAAC) formula, states receive 26.72% of the distributable Federation Account revenue. For the states’ share alone to reach ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion (about $25 billion) in a single declaration.
According to the special Adviser to the president on information and strategy,Bayo Onanuga, NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.
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NLNG has paid approximately $21.5 billion in dividends to the Federation over the last 25 years, with less than $3 billion realised since President Bola Ahmed Tinubu assumed office.
Mr Onanuga said any claim that a single payout exceeds the company’s entire lifetime distribution to the Federation and is being withheld defies basic logic and economic reality.