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 every of the 36 states, describing the allegation as false and inconsistent with the corporate’s monetary data.
The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, disclosed this in an announcement issued on Sunday, October 18, 2026.
The response adopted feedback made by Makinde, the Allied Peoples Movement (APM) presidential candidate for the 2027 common election, through the 2027 Budget Stakeholders’ Consultative Engagement held on the University of Ibadan on Friday, October 16.
Presidency challenges Makinde’s N250 billion claim
According to the Presidency, dividends accruing to the Federation from NLNG are topic to revenue-sharing preparations among the many three tiers of authorities, making Makinde’s claim of N250 billion for every state financially implausible.
Onanuga defined that distributing N250 billion to Nigeria’s 36 states would require N9 trillion for the states alone, excluding allocations to the Federal Government, FCT and native 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 assertion reads partly.
Under the Federation Account Allocation Committee (FAAC) formulation cited by the Presidency, states obtain 26.72% of distributable Federation Account income.
The Presidency said:
- “NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.”
The Presidency additional disclosed that NLNG had paid roughly $21.5 billion in dividends to the Federation over 25 years, with lower than $3 billion acquired since Tinubu assumed workplace in May 2023.
It argued that Makinde’s allegation implied a single dividend distribution exceeding the corporate’s cumulative funds to the Federation.
Makinde questions withheld NLNG dividends
The controversy started after Makinde accused the Federal Government of withholding substantial NLNG dividend funds allegedly earmarked for infrastructure and financial growth throughout Nigeria’s states.
Speaking through the funds stakeholders’ engagement in Ibadan, the governor questioned the choice to delay the alleged funds till after the 2027 common election.
- The governor maintained that his administration had prioritised infrastructure growth as a basis for financial progress, arguing that investments in vital infrastructure had elevated asset values throughout Oyo State.
The dispute additionally comes amid broader issues about Nigeria’s capacity to maximise income from its pure fuel sources, significantly via commercialisation and decreased fuel flaring.
In 2025, Nigeria flared roughly 203.9 billion commonplace cubic ft of pure fuel, regardless of utilising 92.4% of its whole fuel manufacturing.
NLNG data $150 billion income
Nigeria LNG Limited (NLNG) is a pure fuel processing and export firm collectively owned by the Nigerian authorities, via NNPC Limited, and worldwide power firms, together with Shell, TotalEnergies and Eni.
The Nigerian authorities holds a 49% stake, whereas the remaining 51% belongs to worldwide shareholders. The firm processes pure fuel into liquefied pure fuel for export, producing income from which earnings will be distributed as dividends.
- During a gathering with the corporate’s board on the State House, NLNG Managing Director Adeleye Falade disclosed that the corporate had generated over $150 billion in cumulative income since inception, with shareholders collectively receiving roughly $47 billion in dividends.
In 2024, Nigeria recorded a 12% enhance in fuel flaring, the second-largest enhance globally, reinforcing issues in regards to the financial and environmental prices of unutilised fuel sources.
