Niger drags FG to Supreme Court demanding explanation on exclusion from 13% derivation

Niger State has dragged the Federal Government of Nigeria to the Supreme Court demanding explanation of its exclusion from the 13% derivation from benefitting states.

Legal representative of Niger State Government, Mohammed Ndarani, Senior Advocate of Nigeria (SAN), and his team the named the Attorney-General of the Federation (AGF) and Minister of Justice as the sole respondent.

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Citing the provisions of the Constitution, Niger said it is qualified as a resource-producing state and is seeking the Supreme Court’s interpretation of Section 162(2) of the 1999 Constitution (as amended) insisting its entitlement to the 13% derivation allocation.

Niger State also want the court to interpret and enforce Section 232 (1) & (2) of the Constitution to mandate its inclusion in line with the Allocation of Revenue (Federation Account, etc.) Act of 2004.

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Nigeria accused the FG of failing to remit revenue generated from hydroelectric dams within its borders, arguing that the dams have been instrumental to national electricity supply since 1968.

Niger hosts four major hydroelectric power stations Kainji, Jebba, Shiroro, and Zungeru which supply electricity to several Nigerian states and even to neighboring countries including Benin, Togo, and Niger Republic.

The state argued that the AGF is the appropriate respondent, given his constitutional role of providing legal guidance to the President and federal institutions like the Accountant-General of the Federation, Auditor-General, and Revenue Mobilization Allocation and Fiscal Commission (RMAFC)—all key players in national revenue distribution.

Niger contends that despite its major contributions to national electricity and the associated revenue, it has been excluded from derivation benefits.

It accused the federal authorities of failing to fairly represent its interests or to properly advise the President on equitable resource allocation.

The state lamented the impact of hosting the dams on its agrarian communities. It stated that large tracts of farmland have been submerged, limiting agricultural productivity and displacing residents.

It also reported recurring floods that have caused significant loss of life, livestock, and property.

The state cited environmental degradation backed by a scientific assessment report, warning that unless protective measures are taken, the area faces worsening conditions in the years ahead.

Niger also criticized the lack of historical data from the National Bureau of Statistics (NBS) regarding electricity output from the dams prior to 2020.

It noted that recorded output in megawatts was 2,232,706.27 in 2020, 2,632,348.00 in 2021, 2,830,002.96 in 2022, and 2,658,612.96 in 2023.

The state emphasized that while the dams have generated substantial revenue for the nation, none of the proceeds have been specifically allocated to Niger, despite its hosting of the infrastructure.

Ndarani, SAN, stressed that Nigerians in the state have long suffered neglect, resource exploitation, and environmental harm without compensation or inclusion in the derivation framework.

As a remedy, the state is urging the Supreme Court to declare it eligible for 13% derivation and compel the federal government to commence remittances accordingly.

As of now, the Supreme Court has yet to set a date for the hearing.

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