Oyo State Governor Seyi Makinde has maintained his position that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends owed to each state, despite the Presidency dismissing the allegation as “false.”

The controversy stems from remarks Makinde made on Friday at the 2027 Budget Stakeholders’ Consultative Engagement held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, where he claimed the funds would not be released until after the 2027 elections. The Allied Peoples Movement (APM) presidential candidate also alleged the Federal Government had already spent the money.

“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?” the governor said.

Presidential spokesman Bayo Onanuga responded on Sunday, saying, “Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded.” Onanuga explained how the Federation Account is managed and shared among the three tiers of government, noting that “even as a one-off distribution, ₦250 billion to each of the 36 states amounts to ₦9.0 trillion, excluding the Federal Government, the FCT, and the 774 local councils.”

He added that under the Federation Account Allocation Committee (FAAC) formula, states receive 26.72% of distributable Federation Account revenue, meaning the states’ share alone reaching ₦9 trillion would require total NLNG dividends paid into the Federation Account to exceed ₦33.68 trillion (about $25 billion) in a single declaration. The Presidency stated that “NLNG has never paid $25 billion in dividends to the Federation Account in a single payout.”

In a release signed by Sulaimon Olanrewaju, Special Adviser to Makinde on Media, the governor’s office said it had read the Presidency’s response and noted that it “sidestepped the central issue.” According to the statement, the Nigeria Governors’ Forum (NGF), with Federal Government support, engaged a consultant to reconcile NLNG dividend payments, and the exercise identified a shortfall of about ₦9 trillion due to states and local governments—findings the Federal Government accepted.

“The report remains in the custody of both the Federal Government and the NGF. We trust the Presidency will not deny its existence,” the statement said, adding that “Governor Makinde is the NGF’s incumbent Vice-Chairman.”

The governor’s office challenged the Presidency to clarify how NLNG funds were disbursed, asking: “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 statement concluded: “Governor Makinde conducts public discourse with decorum and does not make unfounded claims or quote figures without a basis. We remain ready to provide further clarification while we urge the presidency to address the substance of the matter.”