Presidency, Makinde In War Of Words Over NLNG Dividends

The Presidency has denied Governor Seyi Makinde’s claim that the federal government is withholding N250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends for each state, describing it as false.

Governor Makinde, however, has stood by his claim, insisting that a reconciliation exercise commissioned by the Nigeria Governors’ Forum (NGF) identified a shortfall of about N9 trillion due to states and local governments.

The Presidency, in a statement yesterday by the special adviser to the President on Information and Strategy, Bayo Onanuga, said NLNG Limited 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.

The statement was in response to Makinde’s allegation at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, that the federal government had informed states that the money would not be released until after the 2027 elections.

“Each state was supposed to get N250 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 had said.

Onanuga said the figures cited by the governor did not align with the established revenue-sharing formula or NLNG’s historical dividend payments.

According to the Presidency, a one-off distribution of N250 billion to each of Nigeria’s 36 states would amount to N9 trillion, excluding the federal government, the Federal Capital Territory (FCT) and the 774 local government councils.

The presidential spokesperson explained that under the Federation Account Allocation Committee (FAAC) formula, states receive 26.72 per cent of distributable revenue. For the states’ share alone to reach N9 trillion, total NLNG dividends paid into the Federation Account would have to exceed N33.68 trillion, equivalent to approximately $25 billion, in a single declaration.

“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the statement said, adding that Makinde’s claim defies logic and economic reality.

“Therefore, 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,” Onanuga stated.

He also criticised Makinde’s conduct, alleging that since embarking on his presidential bid, the governor had turned “false, unguarded statements and claims into an art form,” and recalled that Makinde had previously described substantial FAAC inflows to states as “voodoo”.

“Under Nigerian law, Governor Makinde is free to pursue his presidential ambition. He should desist from making falsehoods and disinformation the hallmarks of his campaign,” Onanuga said, urging the public to disregard the claims.

But in a swift response, the Special Adviser (Media) to the Governor, Dr Sulaimon Olanrewaju, said the Presidency sidestepped the central issue.

“We have read the Presidency’s response to Governor Seyi Makinde’s statement on the Federal Government’s withholding of NLNG dividends due to states and local governments.

“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. The exercise identified a shortfall of about ₦9 trillion due to states and local governments. The Federal Government accepted the findings.

“The report remains in the custody of both the Federal Government and the NGF. We trust the Presidency will not deny its existence,” Olanrewaju said.

He noted that Governor Makinde is the incumbent Vice-Chairman of the NGF.

“The Presidency stated that NLNG had paid $21.5 billion in dividends into the Federation Account since inception, including $3 billion received under the current administration. But it did not explain how these funds were disbursed.

“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?

“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis. We remain ready to provide further clarification while we urge the Presidency to address the substance of the matter,” he added.