Presidency Dismisses Makinde’s N250bn NLNG Dividends Withdrawal Claim

By Adedapo Adesanya

The presidency has dismissed claims by Oyo State Governor Seyi Makinde that the federal government is withholding N250 billion in Nigeria Liquefied Natural Gas (NLNG) dividends meant for each of the 36 states, describing the allegation as false and inconsistent with the company’s financial records.

The Special Adviser to President Bola Tinubu on Information and Strategy, Mr Bayo Onanuga, stated this in a statement issued on Sunday, October 18, 2026.

The response followed comments by Mr Makinde, who is also the Allied Peoples Movement (APM) presidential candidate for the 2027 general election, during the 2027 Budget Stakeholders’ Consultative Engagement held at the University of Ibadan on Friday.

Mr Makinde had accused the Mr Tinubu-led government of withholding substantial NLNG dividend payments allegedly intended to support infrastructure development and economic growth across the states.

He also questioned why the alleged funds would be delayed until after the 2027 general election.

However, the Presidency argued that the claim was financially implausible, noting that NLNG dividends accruing to the Federation are shared among the three tiers of government in line with the revenue-allocation formula.

According to Mr Onanuga, distributing N250 billion to each of the 36 states would amount to N9 trillion for the states alone, excluding allocations to the Federal Government, the Federal Capital Territory and local governments.

“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,” the statement read.

Under the Federation Account Allocation Committee (FAAC) revenue-sharing formula cited by the Presidency, states receive 26.72 per cent of distributable Federation Account revenue.

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

It added that NLNG had paid approximately $21.5 billion in dividends to the Federation over 25 years, with less than $3 billion received since President Tinubu assumed office in May 2023.

The Presidency argued that Mr Makinde’s allegation implied a single dividend distribution exceeding the company’s cumulative payments to the Federation over more than two decades.

Mr Makinde, while defending his administration’s approach to development, maintained that infrastructure investment was fundamental to economic growth and had helped increase asset values across Oyo State.

NLNG is a natural gas processing and export company jointly owned by the Nigerian government, through NNPC Limited, and international energy companies, including Shell, TotalEnergies and Eni. The federal government holds a 49 per cent stake in the company, while international shareholders own the remaining 51 per cent.

The company processes natural gas into liquefied natural gas for export, generating revenue from which dividends are distributed to shareholders.

In August, President Tinubu urged NLNG’s management to increase the economic benefits derived from Nigeria’s natural gas reserves, particularly by converting gas otherwise lost through flaring into commercially valuable products.

During a meeting with the company’s board at the State House, NLNG Managing Director, Mr Adeleye Falade, disclosed that the company had generated more than $150 billion in cumulative revenue since inception, while shareholders had collectively received approximately $47 billion in dividends.