Introduction

A fresh dispute has emerged between the Nigerian Presidency and Oyo State Governor Seyi Makinde over the disbursement of Nigeria LNG Limited dividends. Makinde alleged the federal government is withholding N250bn per state until after the 2027 elections, prompting a swift rebuttal from presidential aides.

What Happened

At a stakeholders' engagement at the University of Ibadan, Makinde claimed each state was entitled to N250bn from NLNG dividends, stating projects for Oyo State's economy were already identified. He alleged the federal government had already spent the funds from the Federation Account and that President Tinubu assured governors the money would be paid after the elections. Presidential spokesman Bayo Onanuga countered Sunday, describing the claim as economically unrealistic and urging Nigerians to disregard it.

Why This Matters

The row highlights tension between subnational governments and the federal center over resource control and fiscal transparency. With NLNG having paid roughly $21.5bn in dividends over 25 years—far below the N9tn figure implied by Makinde's claim—the dispute raises questions about revenue allocation ahead of the 2027 elections. It also underscores the Nigeria Governors' Forum's role in advocating for state allocations.

Key Takeaways

  • Presidency rejects Makinde's N250bn per state claim as exceeding NLNG's lifetime payout
  • Governor alleges funds were diverted from the Federation Account
  • NLNG's actual dividend history shows significantly lower disbursements to the Federation
  • Nigeria Governors' Forum identified a reported N9tn shortfall in state allocations, which the federal government accepted
  • The dispute unfolds ahead of the 2027 presidential and gubernatorial elections
  • Transparency in dividend disbursement remains a critical fiscal issue for subnational governments

Conclusion

As the debate over NLNG dividends intensifies, the exchange between Oyo State and the Presidency serves as a test case for Nigeria's fiscal transparency and federal balance. Readers should watch how the Nigeria Governors' Forum and federal authorities resolve the underlying data gaps, and what it means for state-level development plans ahead of 2027.