The Presidency has challenged Oyo State Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in Nigeria LNG (NLNG) dividends for each state, arguing that the figures do not align with the Federation Account revenue-sharing formula. However, questions about the specific dividend payments, their remittance and any approved distribution remain central to resolving the dispute.
The Federal Government’s response followed Makinde’s remarks at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, on Friday.
In a statement dated October 18, 2026, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, dismissed the governor’s allegation that the funds would not be released until after the 2027 general elections.
Makinde had expressed concern over the alleged delay, saying Oyo State had already identified projects that could expand its economy using the anticipated funds.
The governor questioned whether the elections were more important than the welfare of Nigerians.
However, the Presidency described his claim as false and urged the public to disregard it.
Presidency Explains Why ₦250bn for Each State Raises Questions
According to Onanuga, allocating ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion in total.
The Presidency argued that such a distribution would require an exceptionally large pool of NLNG dividend revenue.
Under the Federation Account revenue-sharing formula cited in the statement, state governments receive 26.72 per cent of relevant distributable revenue.
Using that percentage, the Presidency calculated that the states would need a total distributable revenue pool of approximately ₦33.68 trillion to receive ₦9 trillion collectively.
The calculation is mathematically correct under the stated assumption that the entire amount would be distributed according to the 26.72 per cent allocation.
However, the calculation alone does not establish whether a specific dividend payment was approved for distribution or whether any payment was subsequently delayed.
Those questions depend on the actual dividend declarations, remittance records and relevant Federation Account Allocation Committee (FAAC) decisions.
Presidency Reveals NLNG’s Historical Dividend Figures
In defending the Federal Government, Onanuga said NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years.
He added that less than $3 billion had been realised since President Bola Tinubu assumed office.
The presidential aide argued that the historical figures contradicted the suggestion that a single dividend payout exceeding the company’s reported cumulative historical payments was being withheld.
However, the statement did not include a detailed breakdown of the dividend payments, their dates, the recipient accounts or the amounts remitted to the Federation Account.
Consequently, the figures remain attributable to the Presidency unless independently reconciled with complete official payment records.
What NEITI Reports Reveal About NLNG Dividends
The controversy also draws attention to previous concerns about the accounting and remittance of NLNG dividends.
Reports by the Nigeria Extractive Industries Transparency Initiative (NEITI) have examined NLNG-related financial flows and raised questions about how certain dividend payments were received and accounted for.
NEITI’s 2020 oil and gas industry report discussed payments into accounts designated by the Nigerian National Petroleum Company Limited (NNPC) and recommended greater transparency in accounting for NLNG payments.
Its 2021 report also recorded NLNG dividends and interest under financial flows to the Federation.
These reports demonstrate that the accounting and remittance of NLNG-related revenue have been subjects of official scrutiny.
However, they do not establish that the specific ₦250 billion allegedly due to each state in 2026 was approved for distribution or withheld by the Federal Government.
Sources: Nigeria Extractive Industries Transparency Initiative (NEITI), Oil and Gas Industry Reports for 2020 and 2021.
The Four Questions That Could Settle the Dispute
Despite the Presidency’s rejection of Makinde’s allegation, several questions require documentary clarification.
- Was the ₦250 billion allocation formally approved?
An official decision or financial document establishing the alleged entitlement would help determine whether the amount represented an approved payment, a projected allocation or an estimate.
- How much did NLNG actually pay?
A detailed record of dividends declared and paid, including the dates and recipients, would help establish the amount involved.
- Was the money remitted to the Federation Account?
The relevant NNPC remittance records and government financial statements could establish whether the disputed funds were received and how they were accounted for.
- Was any approved payment delayed until after the 2027 elections?
FAAC minutes, official payment instructions or other government documents could help determine whether a distribution was approved and subsequently deferred.
These records would provide a clearer basis for evaluating both the governor’s allegation and the Presidency’s rebuttal.
What the Dispute Means for Oyo State and Other States
For Oyo State and the other 35 states, the disagreement highlights the importance of transparency in the management and distribution of exceptional oil and gas revenue.
If a specific dividend distribution was approved, the relevant records should establish the total amount, the allocation formula, the beneficiaries and the payment schedule.
If the ₦250 billion figure was instead based on an anticipated windfall or a proposed distribution, that distinction would also need to be clarified.
The difference matters because an expected revenue payment is not necessarily the same as money already received into the Federation Account and approved for sharing.
The Presidency has rejected the claim that the Federal Government is withholding the alleged funds. Nevertheless, the documentary evidence required to conclusively establish the status of the specific payment has not been presented in the statement.
Presidency Accuses Makinde of Political Misrepresentation
Beyond disputing the figures, Onanuga criticised Makinde’s public statements, accusing him of making misleading claims since embarking on his presidential ambition.
He also recalled the governor’s previous description of substantial financial allocations from the Federation Account to states, including Oyo, as “voodoo.”
The presidential aide maintained that Makinde was entitled to pursue his political ambition but urged him to avoid statements the Presidency considers misleading.
The government called on Nigerians to disregard what it described as unfounded allegations capable of creating unnecessary tension between citizens and the Federal Government.
Makinde’s underlying allegation, however, must ultimately be assessed against the relevant financial records rather than the political characterisation of either side.
The Bottom Line
The Presidency’s central mathematical argument is sound under its stated assumptions: distributing ₦250 billion to each of 36 states would require ₦9 trillion, equivalent to 26.72 per cent of approximately ₦33.68 trillion in distributable revenue.
But the calculation does not, by itself, resolve the central question: Was a specific NLNG dividend payment approved for distribution to the states and subsequently withheld?
Answering that question requires documentary evidence of the dividend payments, their remittance into the Federation Account, any relevant FAAC approval and the applicable payment schedule.
Until those records are reconciled, the Presidency’s denial should be presented as the Federal Government’s position, while Makinde’s allegation remains a disputed claim rather than an independently established fact.
Sources: State House Press Statement by Bayo Onanuga, October 18, 2026; Nigeria Extractive Industries Transparency Initiative (NEITI), Oil and Gas Industry Reports for 2020 and 2021; National Bureau of Statistics (NBS), Federation Account revenue-allocation methodology.