Oyo State Governor, ‘Seyi Makinde, has raised fresh concerns over the withholding of Nigeria LNG (NLNG) dividend funds meant for states, describing the delay as a major setback for subnational development planning and long-term infrastructure investment.
Speaking on Friday at the Year 2027 Budget Stakeholders’ Consultative Engagement, held at the Olola Ogunlana Hall, International Conference Centre, University of Ibadan, the Governor disclosed that each state is entitled to a sum of ₦250 billion from NLNG dividends.
He noted, however, that the funds have been withheld until after the 2027 elections, an action he said undermines economic expansion efforts across the federation.
Makinde explained that his administration had already identified strategic projects that would accelerate Oyo State’s economic growth once the NLNG funds were released.
He questioned the rationale behind delaying the payments.
He said, “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?”
The Governor’s remarks framed the NLNG dividend issue as central to the fiscal realities confronting states.
He noted that rising costs of governance and infrastructure have placed additional pressure on state budgets.
He added that Oyo State’s wage bill has grown from ₦4.5 billion in 2019 to ₦18 billion in 2026, while the cost of major projects has skyrocketed due to inflation.
Makinde argued that timely release of NLNG dividends would help states cushion these pressures, maintain project pipelines, and sustain economic momentum.
Turning to the broader consultative engagement, the Governor said his administration understood early that infrastructure development is the foundation for economic growth.
He noted that such investments have significantly increased the value of assets across the state. According to him, what Oyo State needs going forward is not necessarily more engineers, but prudent financial managers who will maintain and enhance the institutional reforms already in place.
Makinde further noted that his administration will implement only about 30 per cent of the 2027 budget, since a new government will assume office on May 29, 2027. He thanked residents for their support, stating that over the last seven years, any item included in the budget had a 70 per cent chance of being executed.
On agriculture, the Governor defended his administration’s tractorisation policy, explaining that scrapping the loss-making government tractor unit and privatising tractor services has improved farmers’ access to mechanisation.
The Speaker of the Oyo State House of Assembly, Rt. Hon. Adebo Ogundoyin, commended the Governor for institutionalising public consultation in the budget process, noting that people centred budgeting has improved project execution across the state.
Secretary to the State Government, Professor Musibau Babatunde, highlighted the administration’s shift from ad hoc budgeting to a performance driven model, with over 70 per cent budget performance recorded in 2026.
He explained that the consultative model, which began with three senatorial zones and expanded to all geopolitical zones, has been institutionalised with a feedback mechanism, quarterly budget tracking, and mandatory compliance by MDAs.
He added that no Ministry, Department or Agency is allowed to defend its budget at the pre-treasury stage without demonstrating how it incorporated public inputs from the stakeholders’ engagement.
