Presidency rejects Oyo governor’s claim of ₦250bn NLNG dividends per state

Background of the claim Oyo State Governor Seyi Makinde, who chairs the Nigeria Governors’ Forum, said during a budget stakeholders’ meeting that the federal government had withheld ₦250bn in dividends from Nigeria Liquefied Natural Gas (NLNG) that were due to states and local governments. The allegation was that each of the 36 states was owed this amount.

Presidential response On Sunday, the Presidency released a statement through Special Adviser on Information and Strategy Bayo Onanuga. The response characterised Makinde’s claim as false and inconsistent with NLNG’s financial records. The adviser explained that the distribution of NLNG dividends follows the Federation Account Allocation Committee (FAAC) formula, which allocates 26.72% of distributable Federation Account revenue to the states. Under this arrangement, the figure of ₦250bn per state would require a total of about ₦9 trillion for all states alone, a sum that exceeds the total dividends paid by NLNG.

NLNG dividend figures The Presidency noted that NLNG has paid approximately $21.5bn in dividends to the Federation over the past 25 years, including $3bn received during the current administration. However, the statement did not detail how those funds were distributed among the federal, state and local tiers.

Governor’s counter‑statement In a separate statement, Governor Makinde’s Special Adviser on Media, Dr. Sulaimon Olanrewaju, said the federal response sidestepped the core issue. He asked for clarification on whether states and local governments had received their shares, how the amounts were calculated, and what happened to the $3bn received under the current administration. The adviser affirmed that the governor had no intention of making unfounded claims and that further clarification would be provided.

Implications for revenue sharing The dispute highlights the complexity of revenue‑sharing arrangements in Nigeria. While the FAAC formula provides a clear percentage for states, the exact allocation of NLNG dividends remains a matter of administrative practice. The Presidency’s dismissal of the ₦250bn claim underscores the need for transparent accounting to avoid misunderstandings between the federal government and the states.

Current status Both sides have indicated a willingness to provide further details. The Presidency has reaffirmed its commitment to explaining the disbursement process, while Governor Makinde has promised additional clarification. The matter remains under discussion as the federal government and the governors’ forum seek to resolve any discrepancies in dividend distribution.