N250bn NLNG Dividend Row: Presidency, Makinde Trade Words Over Alleged N9trn Shortfall

ABUJA — A fresh political confrontation has erupted between the Presidency and Oyo State Governor Seyi Makinde over allegations that the Federal Government is withholding N250 billion in Nigeria LNG Limited (NLNG) dividends meant for each state, with the governor demanding answers on an alleged N9 trillion revenue shortfall.

The Presidency has dismissed Makinde’s claim as false, insisting that NLNG has never paid the kind of single dividend sum implied by the allegation. But the governor and his presidential campaign organisation have countered that the government has failed to explain how the company’s actual dividend payments were shared among the three tiers of government.

Makinde, the presidential candidate of the Allied Peoples Movement (APM), had alleged that the Federal Government was holding back the funds until after the 2027 elections.

Responding in a statement issued by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, the Presidency said the allegation was misleading and should be ignored.

It argued that N250 billion for each of the 36 states would translate to N9 trillion, excluding the Federal Government, the FCT and 774 local government areas.

Under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, the Presidency said, states receive 26.72 per cent of distributable Federation Account revenue. It calculated that generating N9 trillion for the states alone would require total NLNG dividend payments exceeding N33.68 trillion, or approximately $25 billion, in a single declaration.

The Presidency insisted that NLNG had never made such a payment.

“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,” the statement said.

It described the allegation that a single payout exceeding the company’s cumulative historical dividend payments was being withheld as economically implausible.

The Presidency also accused Makinde of making misleading statements since declaring his presidential ambition, urging Nigerians to disregard the allegation.

Makinde: Presidency has not answered the real questions

The governor, however, maintained that the Presidency’s response had missed the central issue: how NLNG dividends were received, accounted for and distributed.

In a statement signed by his Special Adviser on Media, Dr Sulaimon Olanrewaju, Makinde challenged the Federal Government to explain an alleged N9 trillion shortfall identified in a reconciliation exercise commissioned by the Nigeria Governors’ Forum (NGF).

According to the governor’s aide, a consultant engaged by the NGF, with support from the Federal Government, conducted the exercise to establish the status of NLNG dividend payments and identified the alleged shortfall owed to states and local governments.

The aide claimed that the Federal Government had accepted the findings and that the report remained with both the government and the NGF.

“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.

Olanrewaju questioned why the Presidency had cited NLNG’s cumulative dividend payments without providing a breakdown of the sums allocated to states and local governments.

“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 asked.

He added that Makinde was prepared to provide further clarification, urging the Presidency to respond directly to the issues raised.

Campaign demands publication of NLNG records

The Makinde-Daura Presidential Campaign Organisation (MDPCO) also weighed in, accusing the Tinubu administration of attempting to divert attention from the alleged withholding of state revenues.

In a statement signed by its Director of Communications, Richard Nnanna Ihediwa, the organisation challenged the President to confirm whether the disputed dividends had been paid to the states.

It demanded the publication of NLNG dividend receipts, FAAC decisions and official correspondence showing how much the company paid into the Federation Account, what was approved for distribution and when the payments were due.

The campaign argued that the Presidency’s reference to NLNG’s total dividend payments over 25 years did not settle questions about the particular payments under investigation.

“Historical totals cannot, by themselves, establish the amount received during a specific period and the sum available for distribution,” the statement said.

It added: “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.”

The organisation also questioned whether the Federal Government had the constitutional authority to withhold funds accruing to states in the federation.

‘Tinubu is running a voodoo economy’

Beyond the financial dispute, the campaign renewed its criticism of Tinubu’s economic policies, backing Makinde’s description of the administration’s economic management as a “voodoo economy”.

It alleged that official economic claims did not reflect the harsh realities confronting Nigerians and accused the ruling APC of relying on propaganda and misinformation.

The campaign further claimed that Makinde’s presidential bid and his RESET NIGERIA Agenda were gaining national attention, describing him as a credible alternative to the incumbent President.

The Presidency, on its part, maintained that Makinde’s allegation was false, warning against what it described as disinformation.

The disagreement leaves key questions about the alleged N9 trillion shortfall unresolved in the public statements exchanged by both sides. While the Presidency has disputed the scale of the claimed dividend allocation, Makinde and his campaign are demanding financial records showing the amounts received and distributed.

A detailed reconciliation of NLNG receipts and FAAC allocations would be central to establishing the facts behind the competing claims.

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