Presidency, Makinde at ‘war’ over N250bn NLNG dividend

By Johnbosco Agbakwuru & Adeola Badru

ABUJA — THE Presidency yesterday described as false Oyo State governor, Seyi Makinde’s latest claim that the federal government was withholding N250 billion in NLNG dividend windfall for each state of the federation, asking that it be disregarded.

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It also noted that, going by Governor Makinde’s claim, a one-off distribution of N250 billion to each of the 36 states would amount to N9 trillion, excluding the federal government, FCT and the 774 local councils, adding that NLNG had never paid $25 billion in dividends to the Federation Account in a single payout.

The governor, who is also the presidential candidate of Allied Peoples Movement, APM, had alleged that the federal government was withholding the amount meant for states until the 2027 elections were over.

But in a statement issued yesterday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the Presidency said any claim that a single payout exceeded the company’s entire lifetime distribution to the federation, and was being withheld, defied basic logic and economic reality.

Tinubu running voodoo economy

However, the governor, through the Makinde-Daura Campaign Organisation, double-down on his allegation last night, dismissing the Presidency’s denial and insisting the President was running a voodoo economy.

Makinde’s claim false — Presidency

The Presidency’s statement read: “The Presidency wishes to clarify Governor Seyi Makinde’s claim that the federal government is withholding N250 billion in NLNG dividends for each state of the federation.

“At the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday, Makinde claimed the funds would not be released until after the 2027 elections. He further claimed that the federal government had spent the money.

“‘Each state was supposed to get N250 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?’ the governor further said.

The Presidency said ‘Makinde’s latest claim that the federal government is withholding the NLNG dividend windfall is false and should be disregarded.’

“Giving details on the subject matter, the Presidency said: ‘Here are the facts the public should know about how the Federation Account is managed and how money is shared among the three tiers of government. Even as a one-off distribution, N250 billion to each of the 36 states amounts to N9.0 trillion, excluding the Federal Government, the FCT and the 774 local councils.

“Under the Federation Account Allocation Committee, FAAC, formula, states receive 26.72 per cent of the distributable Federation Account revenue. For the states’ share alone to reach N9 trillion, total NLNG dividends paid into the Federation Account would have to exceed N33.68 trillion, about $25 billion, in a single declaration.

NLNG has never paid $25bn in dividends

“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout. 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.

“Therefore, any claim that a single payout exceeds the company’s entire lifetime distribution to the Federation, and is being withheld, defies basic logic and economic reality.

“We expect Governor Makinde to be more measured in his public conduct and utterances. Since he embarked on his presidential bid, he has chosen to play politics by making misleading claims rather than presenting verifiable facts. Indeed, he has turned false, unguarded statements and claims into an art form.

“‘He once described the huge financial flow from the Federation Account to states, including Oyo, as ‘voodoo’. It stated that under Nigerian law, Governor Makinde is free to pursue his presidential ambition.

‘’He should desist from making falsehoods and disinformation the hallmarks of his campaign. We urge the public to disregard these unfounded claims, which serve only to mislead citizens and stoke needless disaffection against the federal authorities.’’

Makinde to FG: Explain N9trn NLNG dividends shortfall to states

Doubling-down on the allegation last night, Governor Makinde challenged the Presidency to explain how dividends paid by NLNG into the Federation Account were distributed, insisting that a reconciliation exercise identified an alleged shortfall of about N9 trillion due to states and local governments.

Makinde in a statement signed by his Special Adviser on Media, Dr Sulaimon Olanrewaju, accused the Presidency of sidestepping the central issue, which it said was a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum, NGF, with the support of the federal government, to establish the status of NLNG dividend payments.

He said the exercise identified a shortfall of about N9 trillion owed to states and local governments, adding that the federal government had accepted the findings.

“The report remains in the custody of both the federal government and the NGF. We trust the Presidency will not deny its existence,” the statement said.

The governor’s aide also noted that Makinde was the incumbent vice-chairman of the NGF, a position it cited in defending the basis of his claim.

He further questioned the Presidency’s assertion that NLNG had paid $21.5 billion in dividends into the Federation Account since the company began operations, including $3 billion received under the current administration.

While acknowledging that the Presidency had provided those figures, the governor’s media aide said it had failed to explain how the funds were distributed among the beneficiaries.

“But it did not explain how these funds were disbursed. Have states and local governments received their shares? How much did they receive? And how were those amounts calculated? What happened to the $3 billion received under this administration?” he queried.

The governor’s aide maintained that the questions were central to the dispute over the alleged withholding of the dividends and called on the Presidency to provide details of the payments and their distribution.

Defending Makinde’s position, the aide said the governor was not given to making claims without supporting evidence.

“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis,” he said.

He also reaffirmed the governor’s readiness to provide further information on the matter, while urging the Presidency to address the substance of the allegations rather than sidestepping the issues raised.

“We remain ready to provide further clarification while we urge the Presidency to address the substance of the matter,” he added.

Makinde-Daura Campaign dismisses Presidency’s denial

Also dismissing the Presidency’s denial last night, the Makinde-Daura Campaign Organisation, in a statement signed by Director of Communications, Richard Nnanna Ihediwa, said: ‘’The attention of the Makinde-Daura Presidential Campaign Organization, MDPCO, has been drawn to the lame attempt by the Tinubu Presidency to evade the core issues raised by the presidential candidate of the APM and governor of Oyo State, Seyi Makinde, that the Nigeria Liquefied Natural Gas dividend accruable to states is being withheld by the Tinubu-led federal government.

“Instead of coming clean on why the fund is withheld, the Tinubu Presidency, in its characteristic resort to lies, falsehood, distortions and propaganda left the issue to play around with unsupported figures in the bid to hoodwink Nigerians and divert public attention from this constitutional violation and assault on the states

“If the Tinubu Presidency claims that Engr Makinde is wrong in his assertion that N250 billion NLNG dividend meant for states is being withheld, we challenge President Tinubu to directly tell Nigerians if the said dividends have been paid to the states, rather than resorting to personal attacks on the APM presidential candidate.

“The Presidency appears carried away by its own display of imperial grandeur, forgetting that Nigeria remains a democracy in which demanding accountability for public funds is a civic right, not an offence. Governor Makinde’s presidential ambition does not in any way deny him that right, nor does it exempt the federal government from legitimate scrutiny.

“Moreover, and importantly so, does the Presidency has any constitutional powers to withhold any funds accruing to the states in a Federation?

“We, therefore, challenge the Presidency to publish the relevant NLNG dividend receipts, Federation Account Allocation Committee, FAAC, decisions and official communications establishing the amounts received, the sums approved for distribution and the timing of the proposed payments to states.

“Nigerians deserve clear answers to three fundamental questions of how much the NLNG pay in dividends during the period under discussion and the amount credited to the Federation Account. They need to know how much was approved for distribution to the states.

“Invoking NLNG’s cumulative dividend payments in the last 25 years does not answer these questions. Historical totals cannot, by themselves, establish the amount received during a specific period and the sum available for distribution. It does not answer whether a particular payment was proposed, approved, received, delayed or withheld. Those questions can only be settled by the relevant financial records.

“If the Presidency’s argument is that allocating N250 billion to each of the 36 states would amount to N9 trillion, a sum NLNG has never paid as a single dividend as it alleged, that calculation does not resolve the matter.

“The question is not whether N9 trillion was ever paid in a single transaction, but the amount that is actually under discussion as can be established by the official records.

“Engr. Makinde, the governor of Oyo State and Presidential candidate of the APM is known for his integrity. He is not given to propaganda and disinformation which are the known stock-in-trade and policy direction of the Tinubu-led All Progressives Congress, APC, administration.

“He has maintained a clean, issue-based campaign devoid of mudslinging, misinformation, disinformation and propaganda for which the APC is known.

“The MDPCO stands by Engr. Makinde in his assertion that President Tinubu is running a voodoo economy where government thrive on lies, where the national fortunes only improve on papers with no corresponding improvement in the harsh everyday life of citizens under his administration.

“In any event, our campaign is aware that President Tinubu and his APC have been jittery and restless over Engr. Makinde’s soaring popularity and the widespread acceptance of his RESET NIGERIA Agenda message across the nation since the commencement of the campaign.

“The Tinubu Presidency is disturbed because Nigerians have identified Engr. Makinde as a credible alternative to President Tinubu, leading to the massive surge to his campaign and the APM. It should therefore come to terms with the fact that no amount of propaganda and lies against Engr. Makinde will help President Tinubu at this time.’’

Vanguard News

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