Oyo State Governor Seyi Makinde has reaffirmed his claim that the Federal Government is withholding funds due to states and local governments from Nigeria LNG Limited (NLNG) dividends, challenging the Presidency to explain how the revenue has been distributed.

Makinde’s position followed the Presidency’s denial of his allegation, describing it as false and urging the public to disregard it.

The governor made the initial claim on Friday at the 2027 Budget Stakeholders’ Consultative Engagement held at Olola Ogunlana Hall, International Conference Centre, University of Ibadan.

Makinde alleged that each state was entitled to N250 billion from the NLNG dividends but claimed the funds would not be released until after the 2027 general elections.

He said his administration had already identified projects that could expand Oyo State’s economy if the money were made available.

“Each state was supposed to get N250 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?” he said.

However, Presidential spokesman Bayo Onanuga, in a statement on Sunday, rejected the allegation, arguing that the figures cited by the governor were inconsistent with the established revenue-sharing formula.

Onanuga explained that allocating N250 billion to each of the 36 states would amount to N9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government councils.

He added that under the Federation Account Allocation Committee revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue.

According to him, for the states’ share alone to reach N9 trillion, total NLNG dividends paid into the Federation Account would have to exceed ₦33.68 trillion, or approximately $25 billion, in a single declaration.

The Presidency maintained that NLNG had never paid $25 billion in dividends into the Federation Account in a single payout.

Reacting through a statement signed by his Special Adviser on Media, Sulaimon Olanrewaju, Makinde maintained that the Presidency’s response failed to address the central issue surrounding the alleged outstanding payments.

The governor’s aide said the Nigeria Governors’ Forum (NGF), with the support of the Federal Government, had engaged a consultant to reconcile NLNG dividend payments.

According to the statement, the exercise identified a shortfall of approximately ₦9 trillion due to states and local governments, adding that the Federal Government had accepted the findings.

The statement further claimed that the report remained in the custody of both the Federal Government and the NGF, expressing confidence that the Presidency would not deny its existence.

Makinde, who is the incumbent Vice-Chairman of the NGF, also questioned the Presidency’s account that NLNG had paid $21.5 billion in dividends into the Federation Account since inception, including $3 billion received under the current administration.

The governor’s aide asked whether states and local governments had received their respective shares, how much had been disbursed and the basis for calculating the payments.

The statement also demanded an explanation of what happened to the $3 billion reportedly received under the current administration.

It added that Makinde stood by his claims and remained willing to provide further clarification, urging the Presidency to address the substance of the allegations rather than focus solely on the figures cited.

The dispute has raised questions about the reconciliation of NLNG dividend payments, the distribution of the proceeds among the three tiers of government and the alleged outstanding entitlements of states and local governments.