Oyo State Governor, Seyi Makinde, has raised fresh questions over the management and distribution of revenues accruing to the Federation Account, particularly funds linked to dividends paid by Nigeria LNG Limited (NLNG).
Speaking on the issue, Makinde alleged that NLNG had paid dividends to the Federal Government which subsequently went into the Federation Account, arguing that states ought to have received significantly more from the proceeds.
«“Nigeria LNG Limited paid dividends to the Federal Government, which went into the Federation Account. Each state should be getting N200 billion, but the administration of President Bola Tinubu has spent it. They said they won't pay State Governors until after 2027 elections. Are elections more important than development?”»
The governor’s comments have added another dimension to the continuing debate over Nigeria’s revenue-sharing system, the management of federation revenues and the financial relationship between the Federal Government and the states.
The NLNG Revenue Question
NLNG is one of Nigeria’s most important gas-related investments and operates as a joint venture in which NNPC Limited holds a 49 per cent stake, while international energy companies hold the remaining shares. The company has generated enormous revenues from its liquefied natural gas business and has paid billions of dollars in dividends to its shareholders over the years.
According to figures reported in 2026, NLNG had generated about $149.6 billion in cumulative revenue since commencing operations and distributed approximately $47.2 billion in dividends to its shareholders, including the Federal Government through its 49 per cent interest.
Earlier NLNG figures also showed that more than $44 billion in dividends had been paid over a 25-year period, with roughly 49 per cent attributable to the Federal Government through its shareholding.
The central issue, therefore, is not whether NLNG has generated substantial income or paid dividends. It has. The political argument is about how government manages and distributes the resulting public revenue once it enters the federation’s financial system.
Where Do States Come In?
Nigeria’s Federation Account is designed to distribute federally collected revenues among the three tiers of government — the Federal Government, state governments and local governments — according to the constitutional and statutory revenue-sharing arrangements.
The Federation Account Allocation Committee (FAAC) regularly distributes funds to the three tiers. For example, FAAC shared ₦2.036 trillion among the Federal Government, states and local governments from March 2026 revenue.
More recently, the August 2026 revenue allocation saw the three tiers share ₦2.338 trillion, illustrating the enormous sums moving through Nigeria’s federation revenue system.
Makinde’s argument, however, goes beyond routine monthly FAAC allocations. His contention is that substantial NLNG-related revenue has been available to the Federal Government but that states have not received what he believes should have been their appropriate share.
That claim deserves public scrutiny because the exact amount due to each state cannot simply be assumed to be ₦200 billion without examining the particular revenue, the applicable allocation formula, deductions, timing and whether the funds were already incorporated into previous FAAC distributions.
“Are Elections More Important Than Development?”
The most politically significant part of Makinde’s statement is his question about the 2027 elections.
By asking whether elections are more important than development, the Oyo governor is effectively challenging the Federal Government to demonstrate that revenue management decisions are being driven by economic priorities rather than political calculations.
For state governments already dealing with rising infrastructure costs, salaries, education, healthcare, security and other public obligations, additional federation revenue could provide considerable fiscal breathing room.
The broader question raised by Makinde is therefore one that extends beyond Oyo State: Should revenues belonging to the federation be released and distributed according to established rules and fiscal needs, regardless of the political calendar?
Nigeria’s current fiscal situation makes that question particularly important. States received substantial allocations throughout 2026, but the scale of their responsibilities has also increased. FAAC figures show that states collectively received hundreds of billions of naira in monthly distributions, demonstrating both the size of the federation revenue pool and the importance of transparent allocation.
Ultimately, the controversy surrounding NLNG dividends is about more than one payment or one governor’s accusation. It touches on transparency, accountability, revenue sharing and the fundamental responsibility of government to convert national resources into measurable development.
As the country moves toward the 2027 political cycle, the demand from Nigerians should remain straightforward: every naira belonging to the federation should be properly accounted for, transparently allocated and demonstrably used for the benefit of the Nigerian people.
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