Presidency disputes Makinde’s claim of N250 billion NLNG dividends per state

The presidency has disputed Oyo State Governor Seyi Makinde’s claim that the federal authorities is withholding N250 billion in Nigeria Liquefied Natural Gas Limited (NLNG) dividends meant for every state, describing the allegation as “false.”

Bayo Onanuga, particular adviser to President Bola Tinubu on info and technique, stated in an announcement on Sunday that the quantity claimed by the governor was inconsistent with the revenue-sharing formulation and the historical past of NLNG’s dividend funds to the Federation.

Mr Onanuga argued {that a} one-off cost of N250 billion to every of Nigeria’s 36 states would quantity to N9 trillion, excluding the federal authorities, the Federal Capital Territory and the 774 native authorities areas.

“Under the Federation Account Allocation Committee (FAAC) formula, states receive 26.72 per cent of the distributable Federation Account revenue. For the states’ share alone to reach N9 trillion, total NLNG dividends paid into the Federation Account would have to exceed N33.68 trillion (about $25 billion) in a single declaration,” the assertion learn. “NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.”

Mr Onanuga urged the general public to ignore the claim. “Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded.”

However, the presidency’s assertion didn’t present a transaction-by-transaction reconciliation of the precise NLNG dividend proceeds referenced by Mr Makinde or a breakdown of the sums allegedly resulting from particular person states.

The dispute adopted remarks by Mr Makinde on the 2027 Budget Stakeholders’ Consultative Engagement in Ibadan on Friday, the place he alleged that the Federal Government had spent the dividend proceeds as an alternative of distributing the states’ shares.

“They fooled us. The Nigeria LNG paid dividends to the Federal Government, which went straight into the Federation Account, but they spent it,” Mr Makinde stated,

He said that the quantities because of the states had been reconciled and that every state was anticipated to obtain greater than N250 billion.

Mr Makinde, the presidential candidate of the Allied People’s Movement for the upcoming 2027 elections, additional alleged that the discharge of the funds had been postponed till after the 2027 normal elections, questioning why political concerns ought to take priority over the wants of residents.

“Each state was supposed to get N250 billion. 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?” the governor stated.

Presidency’s argument

Responding, Mr Onanuga stated states obtain 26.72 per cent of distributable Federation Account income beneath the Federation Account Allocation Committee (FAAC) sharing formulation.

READ ALSO: 2027: Makinde/Daura campaign orders house-to-house mobilisation, agent recruitment

He argued that for the states’ mixed share to achieve N9 trillion, the whole NLNG dividends paid into the Federation Account must exceed N33.68 trillion ($25 billion), in a single declaration.

“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” the presidency’s assertion learn.

According to the assertion, NLNG has paid roughly $21.5 billion in dividends to the Federation over the previous 25 years, with lower than $3 billion realised since Mr Tinubu assumed workplace.

Mr Onanuga argued that the quantity allegedly being withheld would subsequently exceed the corporate’s total historic dividend funds to the Federation.

“Therefore, any claim that a single payout exceeds the company’s entire lifetime distribution to the Federation—and is being withheld—defies basic logic and economic reality,” he stated.