No ₦250bn NLNG Dividend Payout For Each State — Presidency

The Presidency has dismissed claims that the Federal Government is withholding ₦250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends for each state of the federation, describing the allegation as false.

The Presidency’s response followed a claim by Oyo State Governor Seyi Makinde that the Federal Government had delayed the release of the funds until after the 2027 general elections.

In a statement issued on Sunday, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, urged Nigerians to disregard the allegation, arguing that the figures cited by the governor did not align with the revenue-sharing formula and NLNG’s historical dividend payments.

Makinde had 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 said the funds would have enabled his administration to execute projects aimed at expanding Oyo State’s economy.

“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?” Makinde was quoted as saying.

However, Onanuga said the alleged payout would amount to ₦9 trillion for the 36 states alone, excluding the Federal Government, the Federal Capital Territory and the 774 local government areas.

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

According to him, for the states’ share alone to reach ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to about $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.

Providing further context, Onanuga said 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.

He argued that the figures contradicted the claim that a single dividend payout of the magnitude alleged by Makinde had been made and was being withheld by the Federal Government.

The presidential spokesman also criticised the governor’s public statements on federal revenue allocations, urging him to exercise restraint in his comments.

Onanuga further accused Makinde of making misleading claims since embarking on his presidential ambition, alleging that the governor had previously described the financial inflows from the Federation Account to states, including Oyo, as “voodoo”.

He said Makinde was free under Nigerian law to pursue his presidential ambition but should avoid making claims that the Presidency considers inaccurate.

The statement urged Nigerians to disregard the governor’s allegation, arguing that it could mislead citizens and create unnecessary distrust of the Federal Government.