NLNG Dividends: Makinde Demands Full Account of $3bn Received Under Tinubu

Oyo State says a reconciliation exercise identified an alleged ₦9 trillion shortfall in payments to states and local governments, while the Presidency disputes the figures presented by the governor.

 

By Wapcodehub9ja LIVE News Desk

 

The Oyo State Government has challenged President Bola Ahmed Tinubu’s administration to provide a detailed account of how nearly $3 billion in dividends from Nigeria Liquefied Natural Gas Limited (NLNG) received under the current government was distributed among the federal, state and local governments.

 

The demand follows an exchange between the Presidency and Oyo State Governor Seyi Makinde over claims that states and local governments are owed substantial outstanding NLNG dividend allocations.

 

In a statement issued through his Special Adviser on Media, Sulaimon Olanrewaju, Makinde maintained that a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum (NGF), with the Federal Government’s support, identified a shortfall of approximately ₦9 trillion due to states and local governments.

 

According to the Oyo State Government, the Federal Government accepted the findings, while the reconciliation report remains in the custody of both the federal government and the NGF. Makinde argued that the Presidency’s response had not addressed the central issue: how the dividend proceeds received under the Tinubu administration were allocated and whether the other tiers of government received their respective shares.

 

The controversy intensified after Makinde claimed that each state was expected to receive about ₦250 billion in NLNG dividends. He had also alleged that the release of the funds would be delayed until after the 2027 general election, prompting the Presidency to reject his account.

 

Presidential spokesperson Bayo Onanuga described the claim that the Federal Government was withholding ₦250 billion for each state as false. He explained that states receive 26.72 per cent of distributable Federation Account revenue under the existing allocation formula. According to the Presidency, providing ₦250 billion to each of the 36 states would amount to ₦9 trillion for the states alone, requiring total NLNG dividends of more than ₦33.68 trillion, or approximately $25 billion, in a single distribution.

 

The Presidency further stated that NLNG had 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, however, has maintained his position, insisting that the government should disclose the distribution of the money received and clarify the reported shortfall. The dispute has placed renewed attention on transparency in Federation Account revenue management, the reconciliation of public funds and the financial entitlements of Nigeria’s three tiers of government.