Oyo State governor alleges funds meant for states have been withheld, raising fresh questions over revenue sharing and fiscal transparency.
Oyo State Governor Seyi Makinde has accused President Bola Tinubu’s administration of withholding about ₦250 billion in dividends from the Nigeria LNG Limited (NLNG) that he says are due to state governments.
Makinde’s allegation raises fresh concerns over the distribution of revenue among Nigeria’s three tiers of government, with state governments relying on their share of public funds to finance infrastructure, healthcare, education and other essential services.
The governor’s claim comes amid ongoing debates over fiscal federalism and the transparency of revenue allocation in Africa’s most populous country.
The NLNG, a major player in Nigeria’s gas industry, generates revenue from the processing and export of liquefied natural gas. Its dividend payments have implications for public finances, depending on the government’s ownership interests and the arrangements governing the distribution of proceeds.
Makinde’s allegation is likely to intensify scrutiny of the Federal Government’s handling of revenues and its financial relationship with the states.
However, the amount cited and the circumstances surrounding the alleged withholding require clarification from the relevant authorities. The Federal Government’s response, including any explanation for the status of the funds, would be central to establishing the facts.
The allegation also renews broader questions about the timely remittance of revenues due to subnational governments and the mechanisms available to resolve disputes over public funds.
There was no verified response from the Presidency or the relevant federal authorities available for inclusion in this report.
