Oyo State Governor, Engineer Seyi Makinde, has sparked a major political row after insisting that the Federal Government is withholding an estimated ₦250 billion in Nigeria LNG Limited (NLNG) dividend windfall due to each of Nigeria’s 36 states.
Speaking at the 2027 Budget Stakeholders' Consultative Engagement held at the International Conference Centre, University of Ibadan, Makinde alleged that the federal authorities decided to defer the disbursement of the funds until after the 2027 general elections.
The governor further claimed that the central government has already expended part of the funds, prioritizing political considerations over state-level economic development.
Addressing stakeholders, business leaders, and public officials, Makinde expressed frustration over the delayed release of the revenues, revealing that Oyo State had already mapped out specific capital projects to be funded by the windfall.
The governor challenged federal authorities to account for the funds, questioning why sub-national governments should be denied immediate access to revenue meant to cushion ongoing economic adjustments across the federation.
The Presidency reacted swiftly to the governor's assertions, issuing a official statement through Bayo Onanuga, Special Adviser to the President on Information and Strategy, dismissing the claims as "false and defying basic logic".
According to the State House, allocating ₦250 billion to each of the 36 states would require a single NLNG dividend declaration exceeding ₦9 trillion for states alone—a figure that would necessitate a total dividend payout of over ₦33.68 trillion ($25 billion) under the Federation Account Allocation Committee (FAAC) revenue-sharing formula.
"NLNG has never paid $25 billion in dividends to the Federation Account in a single payout," Onanuga stated, clarifying that NLNG has declared approximately $21.5 billion in total dividends over its entire 25-year operational history, with less than $3 billion paid since President Bola Tinubu assumed office.
The sharp exchange comes amidst growing political friction as Governor Makinde prepares his platform ahead of the 2027 presidential election cycle.
While the Presidency urged the public to disregard the claims and called on the Oyo governor to maintain measured public conduct, Makinde's supporters maintain that states are entitled to full transparency regarding special revenue disbursements managed by federal fiscal authorities.