Makinde Says Withholding of NLNG Dividends Is Stalling States’ Development

Oyo State Governor and presidential candidate of the Allied Peoples Movement (APM), Seyi Makinde, has accused the Federal Government of delaying the distribution of Nigeria LNG Limited (NLNG) dividend funds due to state governments, warning that the move is affecting development plans and infrastructure projects.

Makinde raised the concern on Friday during the 2027 budget stakeholders’ consultative engagement held at the International Conference Centre, University of Ibadan, Oyo State.

The governor said each state was expected to receive more than ₦250 billion from the NLNG dividends, adding that the anticipated funds had already been factored into development plans by his administration.

He alleged that the Federal Government had received the dividend payments but failed to transfer the respective shares to the states, despite the reconciliation of the figures.

According to Makinde, Oyo State had identified strategic projects that would boost economic activities and improve infrastructure once the money was released.

He expressed concern over the reported decision to postpone payment until after the 2027 general election, questioning the rationale behind the delay.

“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?” he asked.

Makinde suggested that concerns about state governors potentially using the funds to advance their political interests might have influenced the decision to delay the payments.

He, however, argued that such considerations should not prevent state governments from accessing funds meant to support development.

The governor said the delay had disrupted planning for projects intended to expand Oyo State’s economy, improve infrastructure and create opportunities for residents.

He also highlighted the rising cost of governance and infrastructure, noting that financial pressures had increased significantly in recent years.

Makinde disclosed that Oyo State’s monthly wage bill had risen from ₦4.5 billion in 2019 to ₦18 billion in 2026, while inflation had driven up the cost of executing major projects.

He maintained that timely access to the expected NLNG dividend allocation would help states sustain development programmes and respond to growing demands for public infrastructure.

The governor’s comments have renewed attention on the distribution of NLNG dividend proceeds and the financial relationship between the Federal Government and state governments ahead of the 2027 elections.

The Federal Government’s position on the specific allegations raised by Makinde was not included in the reports of the event.