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Oyo State Governor Seyi Makinde has challenged the Federal Government to explain how it distributed nearly $3 billion in dividends received from Nigeria Liquefied Natural Gas Limited (NLNG) since President Bola Tinubu assumed office in 2023.
Makinde’s demand followed the Presidency’s rejection of his claim that states and local governments were being denied their share of NLNG dividends, resulting in an alleged shortfall of about ₦9 trillion.
The Presidency, through the President’s Special Adviser on Information and Strategy, Bayo Onanuga, had dismissed the governor’s claim as false and urged Nigerians to disregard it.
Onanuga argued that for states alone to be owed ₦9 trillion, total dividends paid into the Federation Account would have to exceed ₦33.68 trillion, or about $25 billion, in a single declaration.
He said NLNG had never paid such an amount in one instalment, adding that the company had distributed approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion received since Tinubu took office.
However, Makinde, through his Special Adviser on Media, Sulaimon Olanrewaju, maintained that the Presidency had failed to address the central issue: how the dividends were shared among the federal, state and local governments.
In a statement issued on Sunday, Olanrewaju said the Nigeria Governors’ Forum (NGF), with the support of the Federal Government, had engaged a consultant to reconcile NLNG dividend payments.
According to him, the exercise identified an alleged shortfall of about ₦9 trillion owed to states and local governments, and the Federal Government had accepted the findings.
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“The report remains in the custody of both the Federal Government and the NGF. We trust the Presidency will not deny its existence,” the statement said.
Olanrewaju argued that the Presidency’s explanation of the total dividends received over the years did not clarify how the funds were distributed or whether the subnational governments had received their respective shares.
“The Presidency stated that NLNG had paid $21.5 billion in dividends into the Federation Account since inception, including $3 billion received under the current administration. But it did not explain how these funds were disbursed,” he said.
He further asked: “Have states and local governments received their shares? How much did they receive, and how were those amounts calculated? What happened to the $3 billion received under this administration?”
Makinde’s aide defended the governor’s position, saying he did not make public claims without a basis and remained willing to provide further clarification.
He said the governor “conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis”.
Olanrewaju urged the Presidency to respond directly to the questions surrounding the reconciliation report and the distribution of the dividends.
NLNG produces and exports liquefied natural gas and related products. Its shareholders include the Nigerian National Petroleum Company Limited (NNPCL), Shell, TotalEnergies and Eni.
