Makinde Doubles Down on N250bn NLNG Dividends Claims

By Adedapo Adesanya

The Governor of Oyo State, Mr Seyi Makinde, has maintained that the federal government owes states and local governments about N9 trillion in unpaid Nigeria LNG Limited (NLNG) dividends, dismissing the Presidency’s denial of his claim.

Mr Makinde’s Special Adviser on Media, Sulaimon Olanrewaju, said the Nigeria Governors’ Forum (NGF), with the federal government’s support, engaged a consultant to reconcile NLNG dividend payments, which identified a shortfall of about N9 trillion due to states and local governments.

In a statement, Mr Olanrewaju said the federal government accepted the findings and that the report remained in the custody of both the Federal Government and the NGF.

The governor had earlier claimed that each state was entitled to N250 billion from the dividends, alleging that the funds would not be released until after the 2027 elections.

However, presidential spokesman Bayo Onanuga described the claim as false, arguing that the figures did not align with the Federation Account Allocation Committee (FAAC) revenue-sharing formula.

Mr Onanuga said N250 billion for each of the 36 states would amount to N9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government councils.

He explained that states receive 26.72 per cent of distributable Federation Account revenue, meaning total NLNG dividends would have to exceed N33.68 trillion, or about $25 billion, for states alone to receive N9 trillion.

The Presidency added that NLNG had never paid $25 billion in dividends into the Federation Account in a single payout.

Responding, Mr Makinde’s aide said the Presidency failed to explain how the $21.5 billion in dividends reportedly paid by NLNG into the Federation Account since inception, including $3 billion received under the current administration, had been distributed.

“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 N9 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.”

He asked whether states and local governments had received their shares, how much they received and how the amounts were calculated.

Mr Makinde, who is the NGF’s incumbent vice-chairman, maintained that the claim was based on the reconciliation exercise and urged the Presidency to address the substance of the matter.

“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”, the statement added.