Oyo govt challenges presidency to explain distribution of $3bn received under Tinubu

The Oyo State Government has challenged the presidency to explain how dividends paid by Nigeria Liquefied Natural Gas Limited (NLNG) and received under President Bola Tinubu had been distributed among the many federal, state and native governments, sustaining {that a} reconciliation train recognized a shortfall of about N9 trillion owed to states and native governments.

PREMIUM TIMES reported the presidency’s rejection of the Oyo State Governor Seyi Makinde’s allegation that the federal authorities was withholding NLNG dividends due to states and native governments

In a statement issued by his Special Adviser on Media, Sulaimon Olanrewaju, Mr Makinde stated the presidency’s response failed to tackle the central query of how the funds had been distributed.

The governor, the presidential candidate of the Allied People’s Movement for the 2027 election, stated the Nigeria Governors’ Forum (NGF), with the federal authorities’s help, engaged a marketing consultant to reconcile NLNG dividend funds.

“The exercise identified a shortfall of about N9 trillion due to states and local governments. The federal government accepted the findings,” the assertion learn.

Mr Makinde added that the reconciliation report remained within the custody of each the federal authorities and the NGF, expressing confidence that the presidency wouldn’t deny its existence.

The governor, who will likely be operating in opposition to President Tinubu, the candidate of the All Progressives Congress within the upcoming 2027 election, is the incumbent vice-chairman of the NGF.

FG, Oyo govt dispute over NLNG dividends

The dispute adopted Mr Makinde’s declare that every state was entitled to about N250 billion in NLNG dividends that had allegedly been withheld by the federal authorities.

In its response on Sunday, presidential spokesperson Bayo Onanuga described the declare as false, arguing that the quantity would suggest a complete distribution of N9 trillion to the 36 states alone.

Mr Onanuga stated states obtain 26.72 per cent of distributable Federation Account income under the prevailing revenue-sharing components. He argued that for the states’ mixed share to attain N9 trillion, complete NLNG dividends paid into the Federation Account would have to exceed N33.68 trillion ($25 billion), in a single declaration.

The presidency stated NLNG had paid roughly $21.5 billion in dividends to the federation over the previous 25 years, with lower than $3 billion received under the Tinubu administration.

Oyo questions distribution of $3 billion

The Oyo authorities stated the presidency had not defined how the dividends received under the present administration had been distributed or how a lot every tier of authorities received.

“Have states and local governments received their shares? How much did they receive, and how were those amounts calculated? What happened to the $3 billion received under this administration?” the assertion requested.

The assertion additionally defended Mr Makinde’s figures, saying the governor had a foundation for his claims. “Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis.”

It urged the presidency to tackle the substance of the allegation and stated it was prepared to present additional clarification.

While the presidency’s response centered on the dimensions of NLNG’s historic dividend funds and the revenue-sharing implications of Mr Makinde’s declare, it didn’t present a transaction-by-transaction reconciliation of the dividend proceeds in query or a breakdown of how the quantity received under the present administration was distributed among the many three tiers of authorities.