Presidency Refutes Makinde's Allegations on NLNG Dividend Distribution

The Nigerian Presidency has officially rejected claims made by Oyo State Governor Seyi Makinde regarding the alleged withholding of ₦250 billion in dividends from the Nigeria LNG Limited (NLNG) for each state. In a statement released on Sunday, October 18, the President's Special Adviser on Information and Strategy, Bayo Onanuga, characterized the governor's assertions as unfounded and misleading.

Governor Makinde raised the issue during a recent Budget Stakeholders’ Consultative Engagement held at the International Conference Centre, University of Ibadan. He accused the Federal Government of delaying the disbursement of these funds until after the upcoming 2027 general elections, suggesting that the money had already been allocated for other purposes. "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 stated.

In response, the Presidency argued that the figures presented by the governor do not align with the established revenue-sharing formula or the historical dividend payments made by NLNG. Onanuga pointed out that distributing ₦250 billion to each of Nigeria's 36 states would total an astronomical ₦9 trillion, which is not feasible under the current financial framework. He emphasized that the Federation Account Allocation Committee (FAAC) dictates that states receive only 26.72 percent of distributable revenue.

The statement further clarified that for the states to collectively receive ₦9 trillion, NLNG would need to have paid over ₦33.68 trillion—equivalent to approximately $25 billion—in a single dividend payout. "NLNG has never paid such a sum in one go," the Presidency noted, adding that the company has contributed around $21.5 billion in dividends over the past 25 years, with less than $3 billion received since President Bola Tinubu took office.

Onanuga criticized Makinde for what he described as politically motivated statements, urging the governor to exercise caution in his public remarks. While acknowledging Makinde's right to pursue his presidential ambitions, he advised against the dissemination of what the Presidency termed as disinformation. "We expect Governor Makinde to be more measured in his public conduct and utterances," he stated.

The Presidency's response aims to quell any potential unrest that could arise from Makinde's claims, which they argue could mislead the public and create unnecessary friction between citizens and the Federal Government. As the political landscape heats up ahead of the 2027 elections, the exchange highlights the ongoing tensions between state and federal authorities regarding financial allocations and governance.

In conclusion, the Presidency has called on Nigerians to disregard the allegations made by Governor Makinde, asserting that the claims do not reflect the realities of the NLNG's financial contributions or the established revenue-sharing mechanisms in Nigeria.