Oyo State Governor Seyi Makinde has challenged the Presidency to explain how dividends paid by Nigeria LNG Limited into the Federation Account were distributed among the three tiers of government, insisting that the Federal Government has yet to address the substance of his allegation.
Makinde, through his Special Adviser on Media, Dr Sulaimon Olanrewaju, said on Sunday that a reconciliation exercise conducted by a consultant engaged by the Nigeria Governors’ Forum, with the support of the Federal Government, identified an alleged shortfall of about ₦9tn due to states and local governments.
The governor’s response followed the Presidency’s rejection of his claim that the Federal Government was withholding NLNG dividends meant for states.
Olanrewaju argued that the Presidency’s explanation of the company’s historical dividend payments failed to address the findings of the reconciliation exercise or clarify how the funds were shared.
In a statement, he said, “The exercise identified a shortfall of about ₦9 trillion due to states and local governments. The Federal Government accepted the findings.”
He added that the report remained in the custody of both the Federal Government and the Nigeria Governors’ Forum, expressing confidence that the Presidency would not deny its existence.
“We trust the Presidency will not deny its existence. Governor Makinde is the NGF’s incumbent Vice-Chairman,” Olanrewaju said.
The governor’s aide also questioned the Presidency’s disclosure that NLNG had paid approximately $21.5bn in dividends into the Federation Account since the company began operations, including about $3bn received under the current administration.
According to him, the key issue was not merely the total amount paid by NLNG but how the funds were allocated and whether states and local governments received their respective entitlements.
“But it did not explain how these funds were disbursed,” he said.
Olanrewaju subsequently posed questions about the distribution of the revenue, asking, “Have states and local governments received their shares? How much did they receive, and how were those amounts calculated? What happened to the $3 billion received under this administration?”
He maintained that Makinde’s position was based on the reconciliation exercise and not an unsupported allegation, insisting that the governor conducted public discussions with decorum.
The media aide said the Oyo State Government remained willing to provide further clarification but urged the Presidency to respond directly to the issues raised concerning the alleged revenue shortfall.
The exchange followed the Presidency’s earlier dismissal of Makinde’s claim that each state was entitled to ₦250bn in NLNG dividends that had allegedly been withheld pending the 2027 general elections.
The Presidency had argued that such a payment to the 36 states would amount to ₦9tn and questioned the plausibility of the claim in light of NLNG’s historical dividend payments.
Makinde’s latest response has shifted the focus of the dispute to the reconciliation report, the alleged shortfall and the transparency of the distribution of NLNG dividend revenue among states and local governments.
