Presidency rejects Makinde's N250bn per-state NLNG dividend claim

The Presidency has dismissed Oyo State Governor Seyi Makinde's claim that the Federal Government is withholding N250 billion in Nigeria LNG dividends meant for each of the 36 states. Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, called the allegation false and inconsistent with NLNG's financial records in a statement on Sunday, October 18, 2026.

The response followed Makinde's comments on Friday, October 16, during the 2027 Budget Stakeholders' Consultative Engagement at the University of Ibadan. Makinde, the Allied Peoples Movement presidential candidate for the 2027 election, questioned why NLNG dividend payments allegedly meant for infrastructure and economic development across states were being delayed until after the 2027 general election.

Why Presidency says claim is impossible

Onanuga said NLNG dividends accruing to the Federation pass through revenue-sharing arrangements among the three tiers of government. He argued that paying N250 billion to each of the 36 states alone would require N9 trillion. That excludes allocations to the Federal Government, the FCT and local governments.

The Presidency cited the Federation Account Allocation Committee formula, under which states receive 26.72% of distributable Federation Account revenue. It said Makinde's figure implied a single dividend distribution larger than NLNG's cumulative payments to the Federation.

NLNG has paid about $21.5 billion in dividends to the Federation over 25 years, according to the Presidency. It said less than $3 billion had been received since Tinubu assumed office in May 2023.

Makinde's infrastructure argument

Makinde maintained that his administration had prioritised infrastructure development as a foundation for economic growth. He said investments in critical infrastructure had raised asset values across Oyo State. The governor also raised concerns about Nigeria's ability to maximise revenue from natural gas, including through commercialisation and reduced gas flaring.

In 2025, Nigeria flared about 203.9 billion standard cubic feet of natural gas, despite utilising 92.4% of total gas production. In 2024, gas flaring rose 12%, the second-largest increase globally.

NLNG's revenue and ownership

Nigeria LNG Limited is jointly owned by the Nigerian government through NNPC Limited and international energy companies including Shell, TotalEnergies and Eni. The government holds 49%, while international shareholders hold 51%.

In late August, Tinubu urged NLNG management to increase economic benefits from Nigeria's gas reserves, especially by converting gas otherwise lost to flaring into commercial products. At a meeting with the company's board at the State House, NLNG Managing Director Adeleye Falade said the company had generated over $150 billion in cumulative revenue since inception. Shareholders had received about $47 billion in dividends, he said.

What it means for the naira and states

The dispute puts a spotlight on how NLNG dividends enter the Federation Account and how much reaches states under the FAAC formula. For states and businesses, the difference between a N250 billion per-state payout and the Presidency's $21.5 billion cumulative dividend figure is central to budget planning and revenue expectations.