The Oyo State Government has challenged President Bola Tinubu\u2019s administration to provide a detailed account of how nearly 3 billion dollars in dividends received from Nigeria Liquefied Natural Gas Limited since 2023 were distributed among Nigeria\u2019s federal, state and local governments. The demand, contained in a statement issued on October 19 by Governor Seyi Makinde\u2019s Special Adviser on Media, Sulaimon Olanrewaju, followed the Presidency\u2019s rejection of allegations that approximately 9 trillion naira in revenue belonging to states and local councils had been withheld. The dispute has raised fresh questions about the transparency of Federation Account allocations, the management of petroleum revenues and the financial responsibilities of the three tiers of government.<\/p>\n\n\n\n
The controversy began after Governor Makinde addressed the 2027 Budget Stakeholders\u2019 Consultative Engagement at the University of Ibadan on Friday, October 16. During the meeting, he alleged that each of Nigeria\u2019s 36 states was entitled to approximately 250 billion naira from outstanding NLNG dividends. Makinde claimed that the Federal Government had withheld the funds and that their release had been postponed until after the 2027 general elections. He explained that Oyo State had already identified development projects that could benefit from the expected allocation, arguing that delaying the payment would deprive residents of infrastructure and economic opportunities.<\/p>\n\n\n\n
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President Bola Tinubu\u2019s administration has rejected allegations that it is withholding trillions of naira in NLNG dividends belonging to states.<\/em><\/p>\n\n\n\n Responding on October 18, presidential spokesperson Bayo Onanuga dismissed Makinde\u2019s allegations as false and challenged the financial calculations underlying the governor\u2019s claims. Onanuga explained that states receive 26.72 percent of distributable Federation Account revenue under the existing allocation formula. According to the Presidency, distributing 250 billion naira to each of the 36 states would require 9 trillion naira for state governments alone, excluding allocations to the Federal Government, the Federal Capital Territory and local councils. The Presidency argued that such a payment would require total distributable NLNG dividends exceeding 33.68 trillion naira, equivalent to approximately 25 billion dollars, an amount it said had never been declared by the company in a single payment.<\/p>\n\n\n\n The Presidency further stated that Nigeria LNG had paid approximately 21.5 billion dollars in dividends to the Federation over the previous 25 years, with less than 3 billion dollars received since Tinubu assumed office in May 2023. Onanuga maintained that the governor\u2019s claim was inconsistent with the company\u2019s historical dividend payments and accused him of presenting misleading figures. He also linked the controversy to Makinde\u2019s political ambitions ahead of the 2027 presidential election, arguing that public discussions about government revenue should be based on verifiable financial records rather than political allegations. The administration urged Nigerians to disregard the claim that a substantial dividend windfall was being deliberately withheld from state governments.<\/p>\n\n\n\n The Oyo State Government rejected the Presidency\u2019s explanation, insisting that the response failed to address the central question of how the dividends actually received were distributed. Olanrewaju said the Nigeria Governors\u2019 Forum, with the support of the Federal Government, had engaged a consultant to reconcile NLNG dividend payments and determine the amounts owed to subnational governments. According to the governor\u2019s office, the reconciliation identified an estimated shortfall of 9 trillion naira due to states and local councils. The statement further alleged that the Federal Government had accepted the findings and that copies of the report remained in the possession of both the government and the Nigeria Governors\u2019 Forum. These assertions have not been independently established through publication of the complete reconciliation report.<\/p>\n\n\n\n Makinde\u2019s administration demanded that the Presidency disclose whether states and local governments had received their appropriate shares of the dividends, the amounts transferred and the calculations used to determine the allocations. The governor\u2019s office argued that discussing the company\u2019s historical payments did not resolve questions about the treatment of funds received during the current administration. It also defended Makinde\u2019s credibility, maintaining that his figures were supported by information available to the Nigeria Governors\u2019 Forum. The statement indicated that the Oyo government was prepared to provide further clarification, while urging the Federal Government to release sufficient financial details to allow an independent assessment of the competing claims.<\/p>\n\n\n\n The dispute highlights the importance of Nigeria LNG to government revenue and the broader petroleum industry. The company is jointly owned by the Nigerian National Petroleum Company Limited, which holds a 49 percent stake, Shell with 25.6 percent, TotalEnergies with 15 percent and Eni with 10.4 percent. Its operations involve processing natural gas and exporting liquefied natural gas and related products to international markets. As a shareholder, NNPC receives dividends that can contribute to public revenue through applicable government financial arrangements. However, establishing precisely what is available for distribution requires examination of payment records, statutory deductions, accounting treatment and the relevant revenue allocation procedures.<\/p>\n\n\n\n The disagreement also recalls longstanding controversies surrounding the handling of petroleum earnings and allocations to Nigeria\u2019s subnational governments. A notable historical example occurred in 2014, when former Central Bank Governor Lamido Sanusi raised concerns about discrepancies in oil revenue remittances involving the Nigerian National Petroleum Corporation. The controversy prompted investigations and disagreements over the accounting of petroleum receipts, exposing weaknesses in financial reporting and institutional coordination. Although the circumstances differ from the present NLNG dispute, both controversies demonstrate the importance of accessible financial records, independent reconciliation and clear explanations of how petroleum revenues enter and move through government accounts.<\/p>\n\n\n\n Federal revenue management and allocation procedures are central to the dispute over NLNG dividends.<\/em><\/p>\n\n\n\n The financial implications could be significant for state and local governments struggling to meet infrastructure, healthcare, education and other public expenditure obligations. If a legitimate shortfall is established, its settlement could provide additional resources for development projects and public services. Conversely, the Presidency\u2019s calculations raise questions about whether the amount being claimed reflects actual dividend receipts, a broader reconciliation covering several years or differences in the treatment of financial records. Resolving the disagreement would require a detailed examination of dividend declarations, payment dates, exchange rates, Federation Account entries and allocations made to the respective tiers of government. Such an exercise would also need to distinguish amounts allegedly owed from funds already distributed through established revenue channels.<\/p>\n\n\n\n The controversy has acquired additional political significance because it involves Governor Makinde, a presidential contender ahead of the 2027 general elections, and an administration defending its record on public finance management. The Oyo government maintains that its demand is an accountability issue rather than an attempt to discredit the Federal Government, while the Presidency considers the governor\u2019s original claims misleading. These competing positions demonstrate how disputes over revenue distribution can become politically contentious when public institutions do not provide sufficiently detailed explanations of financial transactions. Independent verification of the reconciliation report and the underlying payment records would offer a more reliable basis for determining whether the alleged shortfall exists.<\/p>\n\n\n\n As of October 23, 2026, the Presidency has not publicly provided a complete transaction breakdown showing how the nearly 3 billion dollars in NLNG dividends reportedly received during Tinubu\u2019s administration were allocated among the different tiers of government. The Oyo State Government continues to demand disclosure of the reconciliation findings and an explanation of the alleged 9 trillion naira shortfall, while federal authorities maintain that the governor\u2019s calculations are incorrect. No independently verified determination has established that the disputed amount was unlawfully withheld or diverted. The next important development will be whether the Federal Government and the Nigeria Governors\u2019 Forum release their respective financial records for public scrutiny. Such disclosure could help resolve the controversy, clarify the distribution of petroleum revenues and strengthen confidence in the transparency of Nigeria\u2019s public financial management system.<\/p>\n","protected":false},"excerpt":{"rendered":" The Oyo State Government has challenged President Bola Tinubu\u2019s administration to provide a detailed account of how nearly 3 billion dollars in dividends received from Nigeria Liquefied Natural Gas Limited since 2023 were distributed among Nigeria\u2019s federal, state and local governments. The demand, contained in a statement issued on October 19 by Governor Seyi Makinde\u2019s […]<\/p>\n","protected":false},"author":11,"featured_media":38395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false,"_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_bluesky_share_type":"","_mastodon_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"","timeOption":"","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":""},"_wpsp_active_default_template":true},"categories":[3699,4,5,3],"tags":[25910,25911,3038,3412,25915,60,25662,23268,939,12605,25667,20733,25659,564,25912,24461,25916,25718,21411,25913,25917,25914,3295,15066],"class_list":["post-38394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-africa","category-featured","category-international","category-naija-news","tag-3-billion-dollars","tag-9-trillion-naira","tag-bayo-onanuga","tag-bola-ahmed-tinubu","tag-faac","tag-federal-government","tag-federal-revenue-distribution","tag-federation-account","tag-government-accountability","tag-nigeria-economy","tag-nigeria-governors-forum","tag-nigeria-latest-news","tag-nigeria-lng","tag-nigeria-politics","tag-nlng-dividends","tag-nnpc-limited","tag-oil-and-gas-revenue","tag-oyo-state-government","tag-oyo-state-news","tag-presidency","tag-public-finance-transparency","tag-revenue-allocation","tag-seyi-makinde","tag-tinubu-administration"],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.funminews.com\/wp-content\/uploads\/2026\/10\/OnTxN44QhSOkidducIkFpnUd_VGhlWQ1qHFdYOrNZ8T8gJNGnGzJ4kodzdcyK4kWGhjXSPIuQ_mq_fkO5MuFq3WnGy8rHfVtX2l6r8mbKZJsCJWYsv-bHwXQzN1tVHib616LgLletQ3A1ZBgDWSOfGYt5ZI_4RbsEj6lcEHUBrE.jpg?fit=1200%2C675","_links":{"self":[{"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/38394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/comments?post=38394"}],"version-history":[{"count":1,"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/38394\/revisions"}],"predecessor-version":[{"id":38396,"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/38394\/revisions\/38396"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/media\/38395"}],"wp:attachment":[{"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/media?parent=38394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/categories?post=38394"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/tags?post=38394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Nigeria LNG operates a major gas processing and export facility on Bonny Island in Rivers State.<\/em><\/p>\n\n\n\n
Presidential spokesperson Bayo Onanuga has disputed Governor Makinde\u2019s claims about outstanding NLNG dividends.<\/em><\/p>\n\n\n\n
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