Presidency Denies Withholding ₦250bn NLNG Dividend For Each State

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 ₦250 billion in Nigeria LNG Limited (NLNG) dividends for each state until after the 2027 general elections, describing the allegation as false.

In a statement issued by the State House on Sunday, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, urged Nigerians to disregard the claim, arguing that the amount involved was inconsistent with NLNG’s historical dividend payments to the Federation.

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

The governor reportedly said the states were each entitled to ₦250 billion and that Oyo State had already identified projects that could expand its economy. He alleged that the funds would not be released until after the 2027 elections.

“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, the Presidency rejected the allegation, insisting that the amount claimed could not be supported by the established revenue-sharing formula and NLNG’s dividend payment history.

According to Onanuga, distributing ₦250 billion to each of the 36 states would amount to ₦9 trillion, excluding the federal government, the Federal Capital Territory and the 774 local government areas.

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

It argued that for the 36 states alone to receive a combined ₦9 trillion from NLNG dividends, the company would have to declare more than ₦33.68 trillion, equivalent to about $25 billion, in a single payout.

The Presidency maintained that NLNG had never paid $25 billion in dividends to the Federation Account in a single declaration.

“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,” the statement said.

It added that the claim of a single dividend payment exceeding the company’s entire reported lifetime distribution to the Federation was inconsistent with the figures cited by the government.

The Presidency also criticised Makinde’s public statements since he declared his presidential ambition, accusing him of making misleading claims. It recalled his previous description of the financial allocations states receive from the Federation Account, including Oyo State, as “voodoo.”

While acknowledging the governor’s constitutional right to pursue his presidential ambition, the statement urged him to avoid making claims it described as false and misleading.

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

The federal government owns 49 per cent of NLNG.

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

NLNG’s Facts and Figures report also showed that annual payments to the Nigerian National Petroleum Company Limited, its government shareholder, stood at $1.39 billion in 2014, $722.44 million in 2021 and $1.10 billion in 2022.

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

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.