Governor Makinde Criticizes Delay of NLNG Dividends Impacting State Development

Governor Seyi Makinde of Oyo State has expressed serious concerns regarding the delay in the disbursement of Nigeria LNG (NLNG) dividend funds that are crucial for state development. Speaking at the Year 2027 Budget Stakeholders’ Consultative Engagement on October 16, 2026, at the International Conference Centre, University of Ibadan, Makinde highlighted that each state is entitled to approximately N250 billion from NLNG dividends, funds that have been withheld until after the upcoming elections.

The governor characterized this delay as a significant hindrance to the economic planning and infrastructure development efforts of states across Nigeria. He argued that the postponement of these funds undermines the ability of state governments to invest in essential projects that could stimulate economic growth. “Is the election more important than the people of Nigeria?” he questioned, emphasizing the urgent need for these funds to support ongoing and planned initiatives.

Makinde noted that his administration had already earmarked specific projects that would enhance Oyo State’s economic landscape, contingent upon the release of the NLNG dividends. He pointed out that the rising costs of governance and infrastructure are straining state budgets, with Oyo State’s wage bill soaring from N4.5 billion in 2019 to N18 billion in 2026. The governor stressed that timely access to NLNG dividends would alleviate some of these financial pressures, allowing states to maintain their project pipelines and sustain economic momentum.

During the consultative engagement, Makinde reiterated his administration's commitment to infrastructure development as a cornerstone of economic growth. He stated that investments in infrastructure have significantly increased the value of assets within the state. However, he indicated that moving forward, Oyo State requires not just more engineers but also skilled financial managers to ensure the effective implementation of institutional reforms.

Looking ahead, Makinde revealed that his administration plans to execute only about 30% of the 2027 budget, as a new government will take office on May 29, 2027. He thanked the residents for their support, noting that projects included in the budget have a high likelihood of being realized, with a 70% execution rate over the past seven years.

On the topic of agriculture, the governor defended his administration’s tractorisation policy, which involved privatizing tractor services to improve access for farmers. This move was aimed at enhancing agricultural productivity and reducing losses associated with the previous government-run tractor unit.

Adebo Ogundoyin, the Speaker of the Oyo State House of Assembly, praised Makinde for institutionalizing public consultation in the budget process, which has led to improved project execution. Professor Musibau Babatunde, Secretary to the State Government, highlighted the shift from ad-hoc budgeting to a performance-driven model, achieving over 70% budget performance in 2026.

The consultative forum, which has expanded to include all geopolitical zones, has established a feedback mechanism and quarterly budget tracking, ensuring that all ministries must demonstrate public input in their budget proposals. Ayobami Ojo, the Commissioner for Budget and Economic Planning, emphasized the importance of realistic revenue projections and prudent expenditure in guiding the 2027 budget.

Stakeholders from various sectors, including local government representatives, student unions, and civil society groups, commended the governor for the ongoing transformation in the state and provided recommendations on areas such as road maintenance, security, and welfare.

As the state prepares for the upcoming elections, the delay in NLNG dividends remains a pressing issue that could significantly impact the development trajectory of Oyo State and other regions across Nigeria.