The Presidency has described as false Oyo State Governor Seyi Makinde's claim that the Federal Government is withholding 250 billion naira in Nigeria LNG dividends for each state until after the 2027 elections. Presidential spokesman Bayo Onanuga, in a statement issued on Sunday, urged Nigerians to disregard the claim, calling it a figure that defies basic arithmetic and economic reality.
Makinde, the presidential candidate of the Allied Peoples Movement, made the claim on Friday at the 2027 Budget Stakeholders' Consultative Engagement held at the International Conference Centre, University of Ibadan. He told the gathering that each state was supposed to receive 250 billion naira from NLNG dividends, that projects had already been identified to spend it, and that the money would now only be paid after the elections. He also suggested the Federal Government had spent the funds alone.
What exactly did Makinde claim?
The Oyo governor asked whether the election was more important than the Nigerian people, arguing that the dividend windfall belonged to all tiers of government. In a response issued through his Special Adviser on Media, Dr Sulaimon Olanrewaju, on Sunday, Makinde stood by his position and demanded answers instead. He said the Nigeria Governors' Forum, with Federal Government support, had engaged a consultant to reconcile NLNG dividend payments, and that the exercise found a shortfall of about 9 trillion naira owed to states and local governments.
How did the Presidency counter the claim?
Onanuga walked through the arithmetic of the Federation Account. States receive 26.72 percent of distributable revenue under the Federation Account Allocation Committee formula. For each of the 36 states to receive 250 billion naira, the states' share alone would total 9 trillion naira, which would require NLNG dividends of more than 33.68 trillion naira, about 25 billion dollars, paid into the Federation Account in a single declaration.
The presidency noted that NLNG has never paid anything close to that in one payout. Over 25 years, the company has paid roughly 21.5 billion dollars in dividends to the Federation, and less than 3 billion dollars of that has come in since President Bola Tinubu took office. Onanuga added that Makinde once described the substantial monthly flows from the Federation Account to states, including his own Oyo, as voodoo economics.
The statement asked Makinde to desist from making falsehoods and disinformation the hallmark of his campaign, while acknowledging his right to pursue his presidential ambition. The presidency also urged the public to disregard claims it said serve only to mislead citizens and stir disaffection against federal authorities.
Why does the NLNG dividend dispute matter?
Nigeria LNG is one of the country's most valuable assets, and the Federal Government holds 49 percent of it on behalf of the Federation. Dividends from the company flow into the Federation Account, where they are shared among federal, state and local governments under the FAAC formula. Disputes over how much has been paid, and whether every tier received its share, go straight to the finances that fund schools, hospitals and salaries across the states.
Punch reported that in July, NLNG Chief Executive Adeleye Falade said the company had paid 47.2 billion dollars in dividends to all shareholders from revenue of 149.6 billion dollars since operations began. The 36 states reportedly received 4.83 trillion naira from the Federation Account between January and June, with Oyo State receiving 147.32 billion naira. Makinde declared his presidential ambition in May under the APM after an alliance with a faction of the PDP led by Kabiru Turaki.
With 2027 campaigns gathering pace, the exchange is an early sign of how fiscal questions will be fought in political language. For ordinary Nigerians, the practical question is simple: whether more money reaches states and councils, and whether it is spent on things they can see. Nigeria's rising food import bill and the health of state finances remain tightly linked to these federal transfers.
Frequently asked questions
- What did Makinde claim? That each state was owed 250 billion naira in NLNG dividends being withheld until after the 2027 elections.
- What did the Presidency say? That the claim is false, because a single payout large enough would exceed NLNG's entire lifetime dividends to the Federation.
- What is Makinde's response? He says a consultant engaged by the NGF and the Federal Government found a shortfall of about 9 trillion naira owed to states and councils, and he wants the figures published.
Sources: Channels TV (October 18, 2026), Punch (October 19, 2026).
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