Presidency disputes Makinde’s claim of N250 billion NLNG dividends per state

The presidency has disputed Oyo State Governor Seyi Makinde’s declare that the government is withholding N250 billion in Nigeria Liquefied Natural Gas Limited (NLNG) dividends supposed for each and every state, describing the allegation as “false.”

Bayo Onanuga, particular adviser to President Bola Tinubu on knowledge and technique, mentioned in a observation on Sunday that the volume claimed by way of the governor used to be inconsistent with the revenue-sharing system and the historical past of NLNG’s dividend bills to the Federation.

Mr Onanuga argued {that a} one-off fee of N250 billion to each and every of Nigeria’s 36 states would quantity to N9 trillion, except for the government, the Federal Capital Territory and the 774 native executive spaces.

“Below the Federation Account Allocation Committee (FAAC) system, states obtain 26.72 in line with cent of the distributable Federation Account profit. For the states’ percentage by myself to succeed in N9 trillion, overall NLNG dividends paid into the Federation Account must exceed N33.68 trillion (about $25 billion) in one declaration,” the observation learn. “NLNG hasn’t ever paid $25 billion in dividends to the Federation Account in one payout.”

Mr Onanuga instructed the general public to fail to remember the declare. “Makinde’s newest declare that the Federal Govt is withholding the NLNG dividend providence is fake and will have to be pushed aside.”

Alternatively, the presidency’s observation didn’t supply a transaction-by-transaction reconciliation of the precise NLNG dividend proceeds referenced by way of Mr Makinde or a breakdown of the sums allegedly because of particular person states.

The dispute adopted remarks by way of Mr Makinde on the 2027 Funds Stakeholders’ Consultative Engagement in Ibadan on Friday, the place he alleged that the Federal Govt had spent the dividend proceeds as an alternative of distributing the states’ stocks.

“They fooled us. The Nigeria LNG paid dividends to the Federal Govt, which went directly into the Federation Account, however they spent it,” Mr Makinde mentioned,

He said that the quantities because of the states have been reconciled and that each and every state used to be anticipated to obtain greater than N250 billion.

Mr Makinde, the presidential candidate of the Allied Folks’s Motion for the approaching 2027 elections, additional alleged that the discharge of the finances have been postponed till after the 2027 normal elections, wondering why political issues will have to take priority over the wishes of voters.

“Each and every state used to be meant to get N250 billion. We had already recognized initiatives that might make bigger Oyo State’s financial system. However they have got now mentioned the cash may not be paid till after the election. Is the election extra vital than the folk of Nigeria?” the governor mentioned.

Presidency’s argument

Responding, Mr Onanuga mentioned states obtain 26.72 in line with cent of distributable Federation Account profit below the Federation Account Allocation Committee (FAAC) sharing system.

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He argued that for the states’ blended percentage to succeed in N9 trillion, the entire NLNG dividends paid into the Federation Account must exceed N33.68 trillion ($25 billion), in one declaration.

“NLNG hasn’t ever paid $25 billion in dividends to the Federation Account in one payout,” the presidency’s observation learn.

Consistent with the observation, NLNG has paid roughly $21.5 billion in dividends to the Federation over the last 25 years, with lower than $3 billion realised since Mr Tinubu assumed workplace.

Mr Onanuga argued that the volume allegedly being withheld would subsequently exceed the corporate’s whole historic dividend bills to the Federation.

“Subsequently, any declare {that a} unmarried payout exceeds the corporate’s whole lifetime distribution to the Federation—and is being withheld—defies fundamental good judgment and financial fact,” he mentioned.