Presidency dismisses Oyo Governor Makinde's claims of N250bn NLNG dividend withholding
The Presidency dismissed claims by Oyo State Governor Seyi Makinde that the federal government owes states ₦250 billion in undisbursed NLNG dividends.
In Brief
- •The Presidency dismissed claims by Oyo State Governor Seyi Makinde that the federal government owes states ₦250 billion in undisbursed NLNG dividends.
- •Makinde alleged the federal government intended to withhold the funds until after the 2027 elections and had spent the money.
- •The Presidency stated that NLNG had paid a total of $21.5 billion in dividends since its inception in 1989, with less than $3 billion realized under President Bola Tinubu's administration.
- •The Presidency argued that distributing ₦250 billion to each of the 36 states would require NLNG to pay over $25 billion in a single payout, which has never occurred.
- •The Presidency cautioned Makinde to exercise restraint in his public conduct and urged the public to disregard his unfounded claims.
Why It Matters
The dismissal of Governor Makinde's claims highlights the ongoing tension between the federal government and state governments over revenue sharing and economic policy. The NLNG dividend issue is a significant point of contention, as it involves billions of naira that could be used to fund critical infrastructure and development projects across the country. The Presidency's response underscores the importance of transparency and accountability in fiscal management, which is crucial for maintaining public trust and ensuring the effective implementation of national economic policies.
Key Details
- Total NLNG Dividends Paid
- $21.5 billion
- Dividends Paid Under Tinubu's Administration
- Less than $3 billion
- Proposed State Share
- ₦250 billion per state
- Total Proposed Distribution
- ₦9 trillion
- Required NLNG Dividends for Proposed Distribution
- Over $25 billion
Context & Background
The Nigeria Liquefied Natural Gas (NLNG) is a state-owned enterprise that plays a crucial role in Nigeria's energy sector. The company has been a significant source of revenue for the federal government, with dividends paid into the Federation Account. The issue of revenue sharing between the federal government and state governments has been a contentious topic in Nigeria's political landscape.
Original Reporting & Sources
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