NLNG Dividends Ignite Fiery Feud: Presidency and Oyo State Clash Over Billions

The Oyo State Government, under the leadership of Governor Seyi Makinde, has initiated a challenge against the Nigerian Presidency regarding the distribution of dividends from Nigeria Liquefied Natural Gas Limited (NLNG). The state government alleges a substantial shortfall owed to states and local governments, maintaining that the federal government has either withheld or improperly spent these dividends, leading to a contentious public dispute.

Governor Makinde, who is also the incumbent vice-chairman of the Nigeria Governors’ Forum (NGF) and a presidential candidate for the Allied People’s Movement in the 2027 election, asserted that a comprehensive reconciliation exercise was undertaken. This exercise, supported by both the NGF and the federal government, reportedly identified a shortfall of approximately N9 trillion that is due to states and local governments. According to Makinde, the federal government had accepted these findings, and the reconciliation report remains in the custody of both the federal government and the NGF. He further claimed that each state was entitled to around N250 billion from these dividends, alleging that the Federal Government directly spent the proceeds from the Federation Account instead of distributing the states' rightful shares. Makinde also raised concerns that the release of these funds was being postponed until after the 2027 general elections, questioning the prioritization of political considerations over the needs of the citizenry.

In a strong rebuttal, Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, dismissed Governor Makinde’s allegations as