The Niger State Government has taken legal action against the Attorney-General of the Federation (AGF) and Minister of Justice at the Supreme Court over its exclusion from the 13% derivation fund, seeking a constitutional interpretation and inclusion among beneficiary states.
In the court filing, counsel to the Niger State Government, Mohammed Ndarani (SAN), cited Section 232 (1) and (2) of the 1999 Constitution, arguing that Niger State deserves to benefit from the Allocation of Revenue (Federation Account, etc.) Act, 2004.
Ndarani asked the court to decide whether Niger State qualifies as a resource-producing state under Section 162(2) of the Constitution, making it eligible for the 13% derivation meant for such states.
He argued that the federal government’s failure to list Niger State among the recipients of the derivation fund, despite the presence of four major hydroelectric power dams, Kainji, Jebba, Shiroro, and Zungeru, constitutes a denial of rightful benefits.
These dams, he noted, have contributed significantly to national electricity supply and, by extension, fiscal revenue since their establishment, without commensurate compensation to the host communities.
According to him, electricity generated from these facilities is distributed to several Nigerian states and exported to neighboring countries such as Benin, Togo, and Niger Republic.
Yet, Niger State remains excluded from the derivation benefits accrued from these resources.
The state counsel accused the AGF, who also represents key federal agencies like the Accountant-General and the Revenue Mobilisation Allocation and Fiscal Commission, of failing to ensure a fair distribution of proceeds from national resources.
Ndarani described Niger State as largely agrarian, with most of its population engaged in subsistence farming.
According to him, the dams have submerged large areas of land, displacing communities, destroying farmlands, and causing frequent flooding.
Ndarani cited a government-commissioned report that highlighted serious environmental damage around the dams but noted that no action has been taken by federal agencies like NESREA to address the situation.
“Not even a single program has been introduced to cushion the environmental effects of the dams,” he told the court.
He further stated that, despite contributing significantly to the national power grid, Niger State has suffered years of neglect, exploitation, and environmental degradation without any share in the revenue generated from its natural resources.
Ndarani also revealed that the National Bureau of Statistics (NBS) failed to provide data on power generation from 1968 to 2019 but confirmed that over 10 million megawatts were generated between 2020 and 2023, proving the economic value of the dams.
He urged the Supreme Court to address what he described as decades of injustice and ensure that Niger State is fairly compensated for its contributions to the national economy.
