Makinde Accuses Tinubu Administration of Spending N250bn NLNG Dividends Meant for States.
Oyo governor says each state was entitled to over N250 billion but the money was spent by the centre after entering the Federation Account.
IBADAN, NIGERIA — The iNews Times | Governor Seyi Makinde of Oyo State has accused the administration of President Bola Tinubu of cornering N250bn NLNG dividends that should have been shared to states, declaring that the Federal Government spent the funds after they were paid into the Federation Account.
Speaking on Friday at a stakeholders’ meeting on the 2027 budget held at the International Conference Centre in Ibadan, Makinde said the Nigeria Liquefied Natural Gas https://www.nlng.com dividends had been properly reconciled and each state was supposed to receive more than N250 billion. Instead, he alleged, the money was utilised solely by the Federal Government without being distributed.
In this report, we examine the key developments, reactions from stakeholders, and the broader implications.
Background of the Story
Nigeria LNG Limited periodically pays dividends to the Federal Government as the majority shareholder. Under the constitutional arrangement governing the Federation Account, such revenues are expected to be shared among the three tiers of government according to the established formula. In recent years, the timing and transparency of these distributions have repeatedly become points of friction between states and the centre, particularly when large sums are involved and states have already mapped out development projects around expected inflows.
Makinde’s remarks come against the backdrop of ongoing debates over fiscal federalism, revenue shortfalls at the state level, and the pressure on governors to deliver visible projects ahead of the 2027 election cycle.
Key Developments
At the Ibadan meeting, the Oyo governor stated that the NLNG dividends were paid into the Federation Account and the figures had been reconciled through consultancy work. Despite this, he claimed the Federal Government proceeded to spend the money without releasing the states’ shares.
Makinde disclosed that Oyo State had already identified specific projects in which it planned to invest its expected portion of the N250 billion-plus allocation in order to expand the state’s economy. He rejected any suggestion that payment of the funds should be delayed until after the 2027 general elections, insisting that the welfare of citizens must take precedence over political calculations.
“They fooled us. The Nigeria LNG paid dividends to the Federal Government, which went straight into the Federation Account, but they spent it,” Makinde said. “So, what do we do? They did the consultancy, reconciled the figures, and each state of the federation was supposed to be paid, but they spent the money alone. The Federal Government spent it alone. Each state should receive more than N250 billion but Tinubu cornered it. We were planning towards this, identified projects that we can invest the money in to further expand the economy of Oyo State.”
Reactions from Stakeholders
Makinde’s public accusation places the Tinubu administration under fresh scrutiny over the handling of Federation Account revenues. While the Federal Government has not yet issued an official response to the specific claim, the governor’s statement reflects a growing assertiveness by some state executives who argue that delayed or withheld statutory revenues undermine their ability to plan and execute budgets.
Education, infrastructure and economic development stakeholders in Oyo and other states are likely to watch closely how the matter is resolved, given that many subnational governments have already factored anticipated NLNG inflows into their medium-term expenditure frameworks.
Implications
The allegation carries significant political and fiscal weight. If accurate, the non-sharing of the N250bn NLNG dividends would represent a substantial loss of development capital for the 36 states at a time when many face rising personnel costs, infrastructure deficits and pressure to deliver results before 2027. Politically, the charge sharpens the narrative of fiscal centralisation versus true federalism and could fuel further demands for greater transparency in the management of the Federation Account. Economically, the delayed or denied access to these funds risks slowing state-level capital projects and private-sector confidence in subnational investment plans.
What Happens Next
Attention will now turn to whether the Federal Government provides a formal explanation or timeline for the distribution of the reconciled NLNG dividends. State governors, particularly those who had already earmarked projects against the expected receipts, are expected to press the issue through the Nigeria Governors’ Forum and other intergovernmental platforms. The handling of the matter in the coming weeks will also test the administration’s commitment to predictable revenue sharing ahead of the 2027 budget cycle.
Conclusion
Governor Seyi Makinde’s allegation that the Tinubu government cornered N250bn NLNG dividends meant for states has thrown a fresh spotlight on the transparency of Federation Account distributions. By linking the issue to concrete development plans in Oyo and rejecting any post-2027 delay, the governor has framed the matter as one of immediate citizen welfare rather than political convenience. How Abuja responds will determine whether the episode deepens distrust between the centre and the states or leads to a clearer, more predictable system for sharing national resources.
