Presidency, Oyo Gov Bicker Over Allegations of Withholding N250bn NLNG Dividend Due Each State

.FG says report is false and should be disregarded

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.Describes as basically illogical and lacking economic reality the claim that a supposed single payout exceeds company’s entire 25 years lifetime distribution to govt purse**

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.Makinde stands by his claim, says presidency’s response side stepped central issue**

.Wants breakdown of how the $3bn NLNG revenue gotten under Tinubu’s govt was shared

.Says findings show a N9trn shortfall due to states and local governments which federal govt acknowledged

Deji Elumoye in Abuja and Kemi Olaitan in Ibadan

The Presidency and Governor Seyi Makinde of Oyo State on Sunday disagree over the reported withholding of NLNG dividends of N250 billion due to each state by the federal government.
While the Presidency punctured the claim by Oyo governor as being false and should be disregarded, Makinde in another response saud he stood by his claims while asking for a breakdown of how $3 billion that accrued under the Tinubu’s government were shared among the three tiers of government.

The Presidency had submitted that report that the federal government was withholding N250 billion dividends accruing to each of the 36 states from the Nigerian Liquified and Natural Gas (NLNG) was false and should be disregarded forthwith.
Makinde had on Friday at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan claimed the funds would not be released until after the 2027 elections adding that the Federal Government had spent the money.

“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?” the governor said.
Reacting to the claim, The Presidency in a release issued by presidential spokesperson, Bayo Onanuga stated that

Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded.
He explained how the Federation Account is managed and how money is shared among the three tiers of government.
According to him: “Even as a one-off distribution, ₦250 billion to each of the 36 states amounts to ₦9.0 trillion, excluding the Federal Government, the FCT, and the 774 local councils.

“Under the Federation Account Allocation Committee (FAAC) formula, states receive 26.72% of the distributable Federation Account revenue. For the states’ share alone to reach ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion (about $25 billion) in a single declaration.”
The Presidency added that NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.
It further delved into NLNG and its Historical Dividend Context saying

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 Tinubu assumed office.
The Presidency also posited that 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’.

“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,” the Presidency further said.
In a swift reaction on Sunday, Governor Makinde said he stood by his submission saying Presidency’s response side stepped the central issue at hand.
In a release issued by his Special Adviser on Media, Dr Sulaimon Olanrewaju, Oyo State Governor called for a breakdown of the $3 billion received under Tinubu’s government were shared among the three tiers of government.
Makinde added that earlier findings by a consultant had showed N9 trillion to states and local governments saying the federal government accepted the findings.
Oyo state governor in the release issued by his media adviser, Dr Sulaimon Olanrewaju, entitled “NLNG Dividends: Governor Makinde stands by his claim”, stated, inter alia: “We have read the Presidency’s response to Governor Seyi Makinde’s statement on the Federal Government’s withholding of NLNG dividends due to states and local governments.
“The response sidestepped the central issue: the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, engaged a consultant to reconcile NLNG dividend payments. The exercise identified a shortfall of about ₦9 trillion due to states and local governments. The Federal Government 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.
“Governor Makinde is the NGF’s incumbent Vice-Chairman.
“The Presidency stated that NLNG had paid $21.5 billion in dividends into the Federation Account since inception, including $3 billion received under the current administration. 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?
“Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis.
“We remain ready to provide further clarification while we urge the presidency to address the substance of the matter.”