The Presidency has dismissed a claim by Oyo State Governor Seyi Makinde that the Federal Government is withholding ₦250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends for each state in the federation.
In a statement issued on Sunday, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, described the claim as false and urged Nigerians to disregard it. The Presidency said the figure cited by the governor was inconsistent with the historical dividend payments made by NLNG to the Federation Account.
Makinde reportedly made the claim during the 2027 Budget Stakeholders’ Consultative Engagement held at the University of Ibadan. He alleged that the funds had been earmarked for states but would not be released until after the 2027 general elections. According to the governor, Oyo State had already identified projects that could stimulate economic growth but would be unable to proceed if the funds remained withheld.
The Presidency, however, challenged the arithmetic behind the claim. It noted that ₦250 billion for each of Nigeria’s 36 states would amount to ₦9 trillion, excluding allocations to the Federal Government, the Federal Capital Territory and the 774 local government areas.
Under the Federation Account Allocation Committee formula, states receive 26.72 percent of distributable Federation Account revenue. Consequently, the Presidency estimated that NLNG dividends exceeding ₦33.68 trillion—approximately $25 billion—would have been required to generate ₦9 trillion for the states alone.
It further stated that NLNG had never paid $25 billion in dividends to the Federation Account in a single transaction. According to the statement, the company has paid approximately $21.5 billion to the Federation over the past 25 years, with less than $3 billion realised since President Bola Ahmed Tinubu assumed office.
The Presidency therefore argued that the alleged payout would exceed NLNG’s entire historical dividend contribution to the Federation, making the claim economically implausible. It maintained that the funds described by Governor Makinde as withheld could not represent a single NLNG dividend distribution of the size alleged.
Beyond disputing the figures, the statement criticised the governor’s public comments, accusing him of using misleading claims as part of his political activities. The Presidency referenced Makinde’s reported presidential ambition and urged him to provide verifiable facts rather than statements that could mislead the public or create distrust in the Federal Government.
The exchange highlights the continuing political tension surrounding revenue allocation, Federation Account disbursements and the management of national resources. With states facing substantial financial pressures and rising expectations from citizens, claims involving large public funds are likely to attract considerable attention.
The Presidency concluded by calling on Nigerians to disregard what it described as unfounded assertions, warning that such claims could generate unnecessary disaffection against the Federal authorities. Makinde’s position, however, has intensified public discussion about the transparency of NLNG dividends and the broader process through which revenues are distributed among Nigeria’s three tiers of government.