Explain $3bn NLNG Dividend Payout, Makinde Challenges FG

By Molayo Anjorin

The Presidential Candidate of the Allied Peoples Movement (APM) in the 2027 general elections and Oyo State Governor, Seyi Makinde has challenged the Federal Government to account for the nearly $3 billion paid as dividends from Nigeria Liquefied Natural Gas Limited (NLNG) since President Bola Tinubu came to power in 2023.

Makinde via a statement issued on Sunday his Special Adviser on Media, Sulaimon Olanrewaju, said the Presidency’s response on the allegations that the states and local governments have been deprived of their share of the dividends does not address main issue.

According to him, the Presidency failed to shed light on how the money was allocated to the three tiers of government.

Makinde said a reconciliation exercise commissioned by the Nigeria Governors’ Forum (NGF) with the backing of the Federal Government revealed an alleged deficit of approximately N9 trillion that is owed to states and local governments.

The APM Presidential Candidate alleged that the Federal Government accepted the findings, adding that both the government and the NGF kept copies of the report

He argued that the explanation by the Presidency on NLNG’s history of dividends did not clarify whether states and local governments had received their respective shares.

The dispute arose from the Presidency’s dismissal of Makinde’s accusation that the Federal Government was withholding N250 billion NLNG dividends for each state until after the 2027 general elections.

The Presidential Spokesman, Bayo Onanuga, said the claims were “false,” adding that the amounts being withheld do not align with NLNG dividends’ payment history and revenue-sharing formula.

Onanuga said allocating N250 billion to each of the 36 states of the Nigeria will be N9 trillion, adding that the combined sum of the states’ shares would only be possible if NLNG paid more than N33.68 trillion ($25 billion) into the Federation Account in one declaration.

The Presidency maintained that NLNG had never made such a payment, 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 assumed office.

However, Makinde’s aide argued that the amount received did not respond to the question of how the funds were spent and if the states and local governments received their 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,” Olanrewaju said.

He further questioned if the subnational governments had their shares, how much they collected and the method used to calculate their allocations.

The Presidency has yet to give a transaction-by-transaction analysis responding to the distribution questions that the governor’s camp raised.