Oyo State Governor Seyi Makinde has accused the federal government of withholding N250 billion in dividends from Nigeria Liquefied Natural Gas (NLNG), but the charge has been refuted by the presidency.
Sunday, Bayo Onanuga, the president’s special adviser on information and strategy, released a statement in which he called the accusation “false” and urged Nigerians to ignore it.
The sum that Makinde claimed did not match the dividend payments that NLNG had previously made to the Federation Account, as stated in the document.
“The Presidency wishes to clarify Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in NLNG dividends for each state of the Federation,” says the whole statement.
Makinde asserted that the funds would not be disbursed until after the 2027 elections during the 2027 Budget Stakeholders’ Consultative Engagement that took place on Friday at the Olola Ogunlana Hall, International Conference Center, University of Ibadan. He went on to say that the funds had already been spent by the federal government.
The original plan was for every state to receive ₦250 billion. Projects that will boost the economy of Oyo State were already in our sights. However, they now claim that payment will be delayed until after the election. According to the governor, the Nigerian people are more important than the election.
You should not believe Makinde’s most recent assertion that the US government is hiding the profit from the NLNG payout; it is unfounded.
What follows is information that the general public should be aware of regarding the management of the Federation Account and the distribution of funds among the three branches of government. Not including the federal government, the FCT, and the 774 local councils, dividing ₦250 billion among the 36 states as a one-time dividend comes to ₦9.0 trillion.
The states get 26.72 percent of the distributable revenue from the Federation Account according to the FAAC formula. All NLNG dividends paid into the Federation Account must surpass ₦33.68 trillion (about $25 billion) in a single announcement in order for the states’ portion to reach ₦9 trillion.
No dividend payment totalling $25 billion has ever been sent to the Federation Account by NLNG. In the context of NLNG and dividend history, the federal government has received almost $21.5 billion in dividends from the company over the past quarter of a century, with less than $3 billion realised under President Bola Ahmed Tinubu’s tenure.
Claims that the corporation is withholding payments because a single dividend would cover the Federation’s whole lifetime distribution go counter to economic reality and common sense.
When he speaks in public, Governor Makinde should use restraint, as we anticipate. He has been playing politics since he began his presidential campaign by stating unfounded assertions instead of providing evidence. Truly, he has elevated the skill of making unfounded, careless assertions to a finer level.
“Oyo and the other states got a lot of money out of the federation account, and he called it ‘voodoo’ once.”
Governor Makinde is not constrained in his pursuit of the presidency under Nigerian law. He needs to stop making misinformation and outright lies his campaign platform.
“We strongly encourage the general public to ignore these baseless accusations, as they lead people astray and fuel needless animosity toward the federal government.”