Presidency disputes Oyo Governor Makinde's claim of N250 billion NLNG dividends per state
The presidency has disputed Oyo State Governor Seyi Makinde's claim of N250 billion NLNG dividends per state, calling it false.
In Brief
- •The presidency has disputed Oyo State Governor Seyi Makinde's claim of N250 billion NLNG dividends per state, calling it false.
- •The presidency argues that a one-off payment of N250 billion to each of Nigeria's 36 states would amount to N9 trillion, which is inconsistent with the revenue-sharing formula and NLNG's historical dividend payments.
- •Makinde alleged that the federal government had spent the dividend proceeds instead of distributing the states' shares, and that the release of the funds had been postponed until after the 2027 general elections.
- •The presidency did not provide a transaction-by-transaction reconciliation of the specific NLNG dividend proceeds referenced by Makinde or a breakdown of the sums allegedly due to individual states.
- •NLNG has paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realized since President Bola Tinubu assumed office.
Why It Matters
The dispute over NLNG dividends highlights the ongoing tension between the federal government and state governments in Nigeria over revenue sharing and fiscal accountability. The allegation of withheld funds could have significant implications for state budgets and economic planning, particularly as the 2027 general elections approach. The controversy also underscores the broader issue of transparency and accountability in the distribution of federal revenues to states.
Key Details
- Claimed Dividend per State
- N250 billion
- Total States
- 36
- Total Claimed Dividend
- N9 trillion
- States' Share of Federation Account Revenue
- 26.72%
- Required NLNG Dividends for N9 Trillion States' Share
- N33.68 trillion ($25 billion)
- Historical NLNG Dividends to Federation
- $21.5 billion
Context & Background
The Nigeria Liquefied Natural Gas Limited (NLNG) has been a significant source of revenue for the Nigerian government, with dividends paid into the Federation Account. The Federation Account Allocation Committee (FAAC) is responsible for distributing the Federation Account revenue to the states, local governments, and the federal government.
Original Reporting & Sources
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