Introduction

Governor Seyi Makinde of Oyo State has publicly challenged the Federal Government to reveal the exact amounts of Nigeria Liquefied Natural Gas dividends due to states and local governments. The demand follows allegations that ₦250 billion per state has been withheld from cumulative NLNG dividend payments.

What Happened

At the Allied Peoples' Movement (APM) South-South Town Hall Meeting in Uyo, Akwa Ibom State, Makinde accused the presidency of diverting NLNG dividend funds into the Federation Account, bypassing constitutional revenue-sharing formulas. He stated that over the years, including under the current administration, the Federal Government has spent NLNG dividends alone, rather than distributing them to sub-national units as required by law.

Why This Matters

The dispute highlights a critical tension in Nigeria's fiscal federalism, where states depend on federal transfers for budgeting and service delivery. If NLNG dividends—derived from the country's natural gas exports—are being retained at the federal level, it could significantly impact sub-national finances, affecting infrastructure, healthcare, and education funding across the 36 states and 774 local governments.

Key Takeaways

  • Makinde claims ₦250 billion per state has been withheld from NLNG dividends.
  • The presidency denies the figure, stating NLNG never made a single payout exceeding its lifetime distributions to the Federation Account.
  • The controversy underscores broader questions about transparency in Nigeria's natural resource revenue management.
  • Constitutional revenue-sharing mandates that Federation Account funds be split among federal, state, and local governments.

Conclusion

As the 2027 general elections approach, the NLNG dividend dispute is likely to feature prominently in state-federal relations. Makinde's demand for transparency reflects growing scrutiny of how Nigeria's natural wealth is distributed, and whether sub-national governments receive their constitutional share.