The Niger State Government has taken the Federal Government to the Supreme Court over its exclusion from the 13% derivation fund, despite hosting major hydroelectric power installations.
In a suit filed by its legal counsel, Mohammed Ndarani (SAN), the state is seeking an interpretation of Sections 232(1) and (2) of the Nigerian Constitution and the Allocation of Revenue (Federation Account, etc.) Act, 2004.
The state wants to be officially recognized as a resource-producing state, which would qualify it for the 13% derivation allocation as stipulated under Section 162(2) of the 1999 Constitution.
Niger State argues that the exclusion is unjust, given that it hosts four of Nigeria’s largest hydroelectric power stations—Kainji, Jebba, Shiroro, and Zungeru dams—which have supplied electricity to various parts of the country since 1968, as well as to neighbouring countries including Benin, Togo, and Niger.
The suit also highlights the significant loss of arable land due to the presence of the dams, which has negatively impacted the livelihoods of local farmers in the predominantly agrarian state.
Ndarani contends that while the dams contribute enormously to national electricity generation and revenue, the people of Niger State have not received a fair share of the proceeds.
He further noted that the Attorney-General, who advises the president and represents key financial institutions such as the Accountant-General and the Revenue Mobilisation Allocation and Fiscal Commission, has failed to uphold his responsibilities in ensuring equitable revenue distribution.
