Oyo State Governor Seyi Makinde has accused the Federal Government of spending funds from Nigeria LNG Limited dividends that were expected to be shared among the 36 states, alleging that each state is entitled to about ₦250 billion but will not receive the money until after the 2027 general elections.
Makinde made the allegations on Friday, October 16, 2026, during the stakeholders’ consultative engagement on Oyo State’s 2027 budget, held at Olola Ogunlana Hall, International Conference Centre, University of Ibadan.
According to the Govenor, each state should get ₦250bn from NLNG dividends, but FG has spent it. they said they won’t pay state governors until after the 2027 elections. Are elections more important than development?
He expressed concern over the reported delay, questioning why funds meant to support development across the states would be withheld until after the next general elections.
He alleged that the dividends paid by Nigeria LNG Limited went into the Federation Account but were spent by the Federal Government without the states receiving their expected shares.
According to Makinde, the figures had been reconciled and the amount due to each state determined, but the payments were still being delayed.
He said each state was expected to receive at least ₦250 billion and disclosed that his administration had already identified projects that would benefit from the money.
Makinde said the funds would have helped Oyo State invest in projects capable of expanding economic activity, improving infrastructure and supporting development.
The governor also suggested that political concerns might be behind the delay, arguing that the Federal Government could be worried that governors would use the money to strengthen political opponents ahead of the 2027 elections.
However, he questioned whether such concerns justified withholding the funds from state governments.
“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 said.
He further questioned whether the money should be withheld simply because governors might use their resources to oppose the ruling party during the elections.
The governor argued that public funds should be managed in the interest of Nigerians rather than according to political calculations.
Makinde’s comments have brought renewed attention to the distribution of NLNG dividend proceeds and the financial pressures facing state governments as they prepare their 2027 budgets.
He noted that the rising cost of governance and infrastructure projects had placed additional pressure on state finances, making the expected funds important for development planning.
In Oyo State, Makinde said the government’s monthly wage bill had risen from ₦4.5 billion in 2019 to ₦18 billion in 2026. He attributed the growing financial pressure partly to rising costs, adding that major projects had become significantly more expensive because of inflation.
He maintained that receiving the expected NLNG funds would help the state sustain planned investments, support economic growth and manage rising expenditure.
The governor also used the budget engagement to defend his administration’s focus on infrastructure, describing it as a foundation for economic development.
He said the government had adopted public consultations to ensure that residents and stakeholders could contribute to decisions on spending priorities.
Makinde added that his administration would implement only about 30 per cent of the 2027 budget, noting that a new government would take over on May 29, 2027.
He said the state had recorded a strong level of budget implementation during his administration, with projects included in the budget having a significant chance of being executed.
On agriculture, the governor defended the decision to privatise tractor services after the government’s tractor unit became financially unsustainable. He said the change had improved farmers’ access to mechanisation.
The budget consultation also featured contributions from government officials and representatives of different groups, including farmers, students, market associations, artisans, religious leaders, persons with disabilities and civil society organisations.
Participants raised concerns about roads, security, public welfare and the maintenance of completed projects.
Nigeria LNG Limited has reported cumulative revenue of about $149.6 billion and dividend payments of $47.2 billion since the company began operations. The Federal Government, through the Nigerian National Petroleum Company, holds a 49 per cent stake in the company.
The dispute raises questions about revenue distribution, transparency and the ability of state governments to plan development projects when expected funds are delayed.
For Makinde, the central issue is whether political considerations should take priority over the needs of citizens who depend on state governments for roads, public services, infrastructure and economic opportunities.
