The Presidency has challenged Oyo State Governor Seyi Makinde to substantiate his allegation that the Federal Government spent NLNG dividend funds meant for states, insisting that the figures he cited do not add up.A fresh political confrontation has erupted between the Presidency and Governor Seyi Makinde over billions of naira in alleged Nigeria Liquefied Natural Gas (NLNG) dividends due to states, with both sides presenting sharply contrasting accounts of the disputed funds.
While Makinde accused President Bola Ahmed Tinubu’s administration of withholding more than ₦250 billion expected by each state until after the 2027 general elections, the Presidency dismissed the claim as false, arguing that the figures involved are inconsistent with the historical dividend payments made by NLNG.
The dispute has raised questions about the management of public revenue, the distribution of Federation Account resources and the growing political tension ahead of the 2027 elections.
Makinde, who spoke on Friday, October 16, during the 2027 Budget Stakeholders’ Consultative Engagement at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, said the alleged delay was affecting his administration’s plans to expand Oyo State’s economy.
The governor maintained that his government had already identified projects for which the anticipated funds would be deployed, arguing that postponing payment until after the elections would undermine development efforts across the country.
“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 asked.
In a further accusation reported by Tribune Online, the governor alleged that NLNG dividends had entered the Federation Account but were subsequently spent by the Federal Government without the states receiving their expected allocations.
He also questioned whether the alleged delay was motivated by fears that governors could use the money to their political advantage ahead of the 2027 elections.
Makinde’s argument centres on the need for states to access the funds for infrastructure and economic development at a time when rising construction costs and increasing recurrent expenditure are placing pressure on state finances.
He disclosed that Oyo State’s monthly wage bill had risen from ₦4.5 billion in 2019 to ₦18 billion in 2026, while inflation had significantly increased the cost of major projects.
However, the Presidency has now mounted a forceful defence of the Federal Government, insisting that the governor’s claim of ₦250 billion for each of the 36 states does not withstand scrutiny when measured against the applicable revenue-sharing formula and NLNG’s historical dividend payments.
In a statement issued on Sunday, October 18, and signed by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the Presidency said the public should disregard what it described as a misleading account of the NLNG dividend issue.
The statement argued that distributing ₦250 billion to each of the 36 states would amount to ₦9 trillion in a single payout, excluding the Federal Government, the Federal Capital Territory and the 774 local government councils.
According to the Presidency, states receive 26.72 per cent of distributable Federation Account revenue under the allocation formula cited in its statement.
On that basis, it calculated that total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to approximately $25 billion, for the states’ share alone to reach ₦9 trillion.
“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the statement declared.
The Presidency further claimed that NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since Tinubu assumed office.
It argued that a supposed single payment exceeding the company’s entire historical dividend distribution to the Federation would be inconsistent with those figures.
The presidential statement also took the dispute beyond the numbers, accusing Makinde of making misleading statements in the course of his political activities.
“We expect Governor Makinde to be more measured in his public conduct and utterances,” Onanuga said, alleging that the governor had increasingly relied on claims the Presidency considers unsubstantiated since embarking on his presidential ambition.
The presidential aide also recalled Makinde’s previous description of substantial financial flows from the Federation Account to states, including Oyo, as “voodoo”, using the remark to question the governor’s present position on revenue allocation.
The statement added that although Makinde was free to pursue his presidential ambition under Nigerian law, he should not make what it described as falsehoods and disinformation central to his campaign.
It urged Nigerians to disregard the governor’s allegations, arguing that they could mislead the public and create unnecessary hostility towards the Federal Government.
THE FIGURES VERSUS THE ALLEGATION
At the heart of the dispute is a critical distinction between the amount of money states may be entitled to receive under an agreed distribution arrangement and the amount of NLNG dividends actually paid into the Federation Account.
The Presidency’s calculation challenges the scale of the alleged payout, but its statement does not, by itself, establish whether a separate, reconciled amount was agreed to be distributed to the states or whether any such payment was formally deferred until after the elections.
Similarly, Makinde’s allegation that the Federal Government spent the money and postponed payment requires supporting financial records or an official explanation identifying the specific dividend proceeds, the amount involved and the basis for the alleged delay.
The competing accounts therefore leave an important question unanswered: what specific NLNG dividend payment or distribution arrangement is the governor referring to, and what official records establish its status?
A definitive resolution would require clarification from the relevant fiscal authorities, including the Federal Ministry of Finance and the Federation Account Allocation Committee (FAAC), alongside records showing the actual dividend receipts, any agreed allocations and the status of the disputed payment.
For now, the exchange has become another flashpoint in the political contest ahead of the 2027 elections, with Makinde framing the issue as a question of whether political considerations should take precedence over development, while the Presidency insists that the figures underpinning his allegation are untenable.
Beyond the political exchanges, the central issue remains the transparent management of public revenue and the timely disclosure of information that would enable Nigerians to determine whether funds due to the states have been delayed, distributed or spent.
Until the underlying financial records are made clear, the Presidency’s rejection and Makinde’s accusation remain competing claims in a dispute with significant implications for public confidence in the management of the Federation’s resources.
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