Oyo State Governor Seyi Makinde has challenged the Federal Government to explain how it disbursed nearly $3 billion in dividends received from the Nigeria Liquefied Natural Gas Limited (NLNG) since President Bola Tinubu assumed office in 2023.
Makinde’s demand follows the Presidency’s rejection of his allegation that the Federal Government was withholding dividends due to state and local governments, resulting in an estimated shortfall of about ₦9 trillion.
NLNG produces and exports liquefied natural gas and related products. The company is jointly owned by the Nigerian National Petroleum Company Limited (NNPCL), Shell, TotalEnergies and Eni.
Speaking at the 2027 Budget Stakeholders’ Consultative Engagement in Ibadan on Friday, Makinde alleged that each state was entitled to about ₦250 billion from the outstanding dividends.
However, in a statement issued on Sunday, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, described the governor’s claim that the Federal Government was withholding NLNG dividend payments as false and urged Nigerians to disregard it.
Onanuga argued that for the states’ share alone to amount to ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to about $25 billion, in a single declaration.
He maintained that NLNG had never paid $25 billion in dividends into the Federation Account in one transaction.
According to him, the company paid approximately $21.5 billion in dividends to the federation over the past 25 years, with less than $3 billion received since Tinubu assumed office.
Makinde insists Presidency has not addressed the issue
Responding on Sunday, Makinde’s Special Adviser on Media, Sulaimon Olanrewaju, said the governor stood by his position, insisting that the Presidency’s response failed to address the central issue surrounding the alleged outstanding payments.
“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,” Olanrewaju said.
He explained that the reconciliation exercise identified a shortfall of about ₦9 trillion allegedly due to state and local governments, adding that the Federal Government had accepted the findings.
According to him, the report remains in the custody of both the Federal Government and the Nigeria Governors’ Forum, expressing confidence that the Presidency would not deny its existence.
Olanrewaju further noted that while the Presidency disclosed that NLNG had paid $21.5 billion in dividends into the Federation Account since its inception, including approximately $3 billion under the current administration, it had yet to explain how the funds were distributed.
He questioned whether states and local governments had received their respective shares, the amounts paid to them and the calculations used to determine their entitlements.
“What happened to the $3 billion received under this administration?” he asked.
The governor’s media aide maintained that Makinde does not make public claims or cite figures without a basis, adding that the governor was prepared to provide further clarification on the matter.
He urged the Presidency to address the substance of the allegations by clarifying the outcome of the reconciliation exercise and providing details of how NLNG dividends received during the current administration were allocated among the tiers of government.
The dispute centres on the reconciliation of NLNG dividend payments and whether the amounts due to state and local governments have been fully accounted for and distributed. While the Presidency disputes Makinde’s figures, the governor’s camp insists that the outstanding reconciliation report and the distribution of the funds require further explanation.
