The Presidency says Governor Seyi Makinde’s allegation that the Federal Government is withholding ₦250 billion in NLNG dividends for each state is false, citing Nigeria’s revenue-sharing formula and the company’s historical dividend payments.
The Presidency has dismissed as false a claim by Oyo State Governor Seyi Makinde that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends for each of Nigeria’s 36 states until after the 2027 general elections.
In a State House press statement dated October 18, 2026, and signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Presidency challenged the figures cited by Makinde and urged Nigerians to disregard what it described as unfounded claims capable of misleading the public and creating unnecessary tension between the Federal Government and the states.
The controversy followed Makinde’s remarks at the 2027 Budget Stakeholders’ Consultative Engagement held on Friday at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, where he alleged that the anticipated NLNG dividend proceeds had not been released to state governments.
According to the governor, each state was expected to receive ₦250 billion from the funds, which he said his administration had planned to invest in projects to expand Oyo State’s economy.
“We had already identified projects that would expand Oyo State’s economy. But they have now said the money will not be paid until after the election. Is the election more important than the people of Nigeria?” Makinde was quoted as saying.
The governor also alleged that the Federal Government had spent the money instead of distributing it to the states.
Rejecting the allegation, the Presidency argued that the figures presented by Makinde were inconsistent with the established revenue-sharing arrangement under the Federation Account Allocation Committee (FAAC).
Onanuga stated that a one-off payment of ₦250 billion to each of the 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government councils.
He explained that states receive 26.72 per cent of distributable Federation Account revenue under the applicable allocation formula.
According to the presidential spokesman, for the states’ share alone to reach ₦9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, equivalent to approximately $25 billion, in a single declaration.
“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the statement said.
The Presidency maintained that the scale of the alleged payment made Makinde’s claim implausible, arguing that a single dividend distribution of that magnitude would exceed the company’s entire historical dividend payments to the Federation.
Providing further context, the statement said NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since President Bola Ahmed Tinubu assumed office.
Onanuga argued that these figures contradicted the suggestion that a single dividend payout of about $25 billion was available but being withheld from the states.
The Presidency consequently rejected Makinde’s allegation that the funds had been spent or deliberately withheld until after the 2027 elections, describing the claim as misleading.
However, the statement did not provide a transaction-by-transaction breakdown of NLNG dividend receipts or a detailed reconciliation of the specific funds referenced by the governor.
The presidential spokesman also criticised Makinde’s public conduct, alleging that the governor had increasingly made misleading statements since embarking on his presidential ambition.
The statement recalled Makinde’s previous description of the substantial financial allocations flowing from the Federation Account to states, including Oyo, as “voodoo”.
Onanuga said the governor was constitutionally free to pursue his presidential ambition but urged him to avoid statements the Presidency considers false or capable of spreading disinformation.
The statement concluded by urging Nigerians to disregard what it described as unfounded allegations that could mislead citizens and generate unnecessary hostility towards the Federal Government.
While the Presidency has challenged Makinde’s figures using the revenue-sharing formula and historical dividend data, the dispute centres on the precise nature, amount and status of the funds to which the governor referred.
A definitive assessment would require the relevant NLNG dividend declarations, records of payments into the Federation Account, applicable distribution arrangements and any official documentation establishing whether a specific allocation of ₦250 billion per state was approved or promised.
Until such records are made available, Makinde’s allegation that the funds were withheld until after the elections remains an allegation, while the Presidency’s rejection represents the Federal Government’s official position on the matter.
The exchange has brought renewed attention to transparency in Federation Account revenue management as governments prepare their 2027 budgets ahead of the next general elections.
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