Presidency Denies Withholding ₦250bn NLNG Dividend For Each State

The Presidency has dismissed Oyo State Governor and Allied People’s Movement (APM) presidential candidate, Seyi Makinde’s declare that the federal authorities is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends for every state till after the 2027 normal elections, describing the allegation as false.

In an announcement issued by the State House on Sunday, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, urged Nigerians to ignore the declare, arguing that the quantity concerned was inconsistent with NLNG’s historic dividend funds to the Federation.

Makinde had made the allegation on Friday on the 2027 Budget Stakeholders’ Consultative Engagement held on the Olola Ogunlana Hall, International Conference Centre, University of Ibadan.

The governor reportedly stated the states had been every entitled to ₦250 billion and that Oyo State had already recognized initiatives that might increase its economic system. He alleged that the funds wouldn’t be launched till after the 2027 elections.

“Each state was supposed to get ₦250 billion. We had already identified projects that would expand Oyo State’s economy. But they have now said the money will not be paid until after the election. Is the election more important than the people of Nigeria?” Makinde was quoted as saying.

However, the Presidency rejected the allegation, insisting that the quantity claimed couldn’t be supported by the established revenue-sharing system and NLNG’s dividend cost historical past.

According to Onanuga, distributing ₦250 billion to every of the 36 states would quantity to ₦9 trillion, excluding the federal authorities, the Federal Capital Territory and the 774 native authorities areas.

The assertion defined that, beneath the Federation Account Allocation Committee (FAAC) revenue-sharing system, states obtain 26.72 per cent of distributable Federation Account income.

It argued that for the 36 states alone to obtain a mixed ₦9 trillion from NLNG dividends, the corporate must declare greater than ₦33.68 trillion, equal to about $25 billion, in a single payout.

The Presidency maintained that NLNG had by no means paid $25 billion in dividends to the Federation Account in a single declaration.

“NLNG has paid approximately $21.5 billion in dividends to the Federation over the last 25 years, with less than $3 billion realised since President Bola Ahmed Tinubu assumed office,” the assertion stated.

It added that the declare of a single dividend cost exceeding the corporate’s complete reported lifetime distribution to the Federation was inconsistent with the figures cited by the federal government.

The Presidency additionally criticised Makinde’s public statements since he declared his presidential ambition, accusing him of creating deceptive claims. It recalled his earlier description of the monetary allocations states obtain from the Federation Account, together with Oyo State, as “voodoo.”

While acknowledging the governor’s constitutional proper to pursue his presidential ambition, the assertion urged him to keep away from making claims it described as false and deceptive.

“We urge the public to disregard these unfounded claims, which serve only to mislead citizens and stoke needless disaffection against the Federal authorities,” it stated.

The federal authorities owns 49 per cent of NLNG.

In July, the corporate’s Chief Executive Officer, Adeleye Falade, stated NLNG had paid $47.2 billion in dividends to all its shareholders, together with the Federal Government, from income of $149.6 billion because it started operations.

NLNG’s Facts and Figures report additionally confirmed that annual funds to the Nigerian National Petroleum Company Limited, its authorities shareholder, stood at $1.39 billion in 2014, $722.44 million in 2021 and $1.10 billion in 2022.

Meanwhile, the 36 states reportedly acquired ₦4.83 trillion from the Federation Account between January and June, with Oyo State receiving ₦147.32 billion.

Makinde declared his presidential ambition on May 14 at a rally in Ibadan beneath the APM, following the celebration’s alliance with a faction of the Peoples Democratic Party led by Kabiru Turaki.