Seyi Makinde Questions NLNG Dividend Distribution
The Oyo State Government has challenged the Presidency to explain how billions of dollars in dividends from Nigeria Liquefied Natural Gas Limited, NLNG, received under President Bola Ahmed Tinubu’s administration were distributed among the federal, state and local governments.
The government, led by Governor Seyi Makinde, says a reconciliation exercise reportedly identified a shortfall of about nine trillion naira in payments due to states and local governments.
However, the Presidency has disputed Makinde’s claims, setting the stage for a growing disagreement over the amount of NLNG dividends paid into government accounts and how the proceeds were shared.
Mediaplusng.com reports that the Oyo State Government’s position was conveyed in a statement issued by the governor’s Special Adviser on Media, Sulaimon Olanrewaju.
According to the statement, the Nigeria Governors’ Forum, with support from the Federal Government, engaged a consultant to reconcile NLNG dividend payments.
The Oyo government maintains that the exercise identified a shortfall of approximately nine trillion naira owed to states and local governments, adding that the Federal Government accepted the findings.
It also claims that the reconciliation report remains in the custody of both the Federal Government and the Nigeria Governors’ Forum.
The government says the Presidency’s response failed to address what it considers the central issue: how the dividends received were distributed among the three tiers of government.
The controversy followed Makinde’s earlier claim that each state was entitled to about 250 billion naira in NLNG dividends allegedly withheld by the Federal Government.
In response, presidential spokesperson Bayo Onanuga rejected the allegation, describing it as false and questioning the figures cited by the Oyo governor.
Onanuga argued that distributing 250 billion naira to each of Nigeria’s 36 states would amount to nine trillion naira for the states alone.
He further stated that, under the existing revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue.
According to the Presidency, for the combined state share to reach nine trillion naira, total NLNG dividends paid into the Federation Account would have to exceed 33.68 trillion naira, equivalent to approximately 25 billion dollars, based on the calculation presented.
The Presidency also stated that NLNG had paid approximately 21.5 billion dollars in dividends to the federation over the past 25 years, with less than three billion dollars received under the Tinubu administration.
But the Oyo State Government says the response does not explain how the money received under the current administration was shared.
It is asking the Presidency to disclose how much the federal, state and local governments received, whether all entitled beneficiaries were paid, and the calculations used to determine their respective allocations.
The state government insists that Makinde’s figures have a basis and has called for a detailed explanation rather than a dispute over the overall size of the dividend payments.
The disagreement highlights the importance of transparency in the management and distribution of public revenue, particularly funds shared among Nigeria’s three tiers of government.
At the centre of the dispute are two separate questions: the total amount of NLNG dividends paid into the Federation Account and whether the amounts due to states and local governments have been fully distributed.
While the Presidency has challenged the scale of Makinde’s claim by citing historical dividend figures and the revenue-sharing formula, the Oyo government is demanding a detailed reconciliation of the funds received under the current administration.
A transaction-by-transaction breakdown and supporting records would help clarify the figures and establish whether any shortfall exists.
For now, the competing claims remain disputed, and the public awaits further clarification from the relevant authorities.
