Oyo State Governor Seyi Makinde has warned that deliberate delays by the Federal Government in disbursing expected Nigeria LNG Limited (NLNG) dividend allocations risk crippling subnational infrastructure development, stalling major economic expansion projects, and deepening fiscal strain across the country’s 36 states.
Addressing civil society leaders, traditional rulers, and community representatives on Friday, October 16, 2026, during the 2027 Budget Stakeholders’ Consultative Engagement held at the University of Ibadan in Ibadan, Governor Makinde revealed that each state was projected to receive approximately ₦250 billion from the NLNG dividend windfall to fund high-impact capital projects.
In a direct critique of the central administration’s fiscal priorities, Governor Makinde alleged that the Federal Government spent initial proceeds and chose to defer the subnational allocations until after the 2027 general 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 told the audience.
The governor emphasized that deferred revenues severely strain state budgets already squeezed by soaring inflation, pointing out that Oyo State’s monthly wage bill climbed from ₦4.5 billion in 2019 to ₦18 billion in 2026.
The town hall meeting was attended by senior government officials, including Deputy Governor Bayo Lawal, Chief of Staff Akinwale Akinwole, and Head of Service Adenike Fashina, alongside organized labor union leaders and trade association executives.
In a swift counter-response issued on Sunday, October 18, 2026, the Presidency firmly dismissed the governor’s claims, describing the alleged ₦250 billion per state payout figure as mathematically flawed and factually inaccurate.
Speaking on behalf of the central administration, Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, maintained that NLNG earnings are governed strictly by constitutional allocation frameworks:
Onanuga clarified that NLNG has disbursed approximately $21.5 billion in total dividends to the Federation over the last 25 years, with cumulative payouts under the current administration standing at less than $3 billion.
Under the Federation Account Allocation Committee (FAAC) framework, where states share 26.72% of federal revenues, for states to receive ₦9 trillion, NLNG’s total payout into the Federation Account would have had to exceed $25 billion in a single period, surpassing its 25-year total.
Onanuga characterised the statement as political rhetoric linked to Governor Makinde’s national political ambitions under the Allied Peoples Movement (APM), urging the public to disregard the claims.
