Niger State has initiated a legal action against the Federal Government at the Supreme Court, challenging its exclusion from the 13% derivation fund.
The state argues that it should be a beneficiary due to its contribution to national resources.
In the originating summons, filed by its legal team led by Mr. Mohammed Ndarani (SAN), Niger State named the Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), as the sole defendant.
The lawsuit primarily seeks a Supreme Court determination on whether Niger State qualifies as a producer of natural resources, thus entitling it to the 13% derivation as defined by Section 162(2) of the 1999 Constitution (as amended).
Furthermore, Niger State is asking the court to interpret and apply Section 232 (1) & (2) of the Constitution to compel its inclusion by the Federal Government, in line with the Allocation of Revenue (Federation Account, etc.) Act, 2004.
The state contends that it has been unfairly excluded from remittances derived from the proceeds of fiscal revenue generated by Hydroelectric Power dams within its territory.
Niger State asserts that these dams have contributed to the overall electricity generation for the national grid since 1968, making them a significant resource from which the state should benefit.
According to the plaintiff, it hosts four major hydroelectricity dams: Kainji Dam, Jebba Dam, Shiroro Dam and Zungeru Dam, which serve as a power house for electricity supply to various states in the country.
It argued that through these power stations, FG extended electricity supply to the Republics of Benin, Togo and Niger.
The state said its decision to list the AGF as the sole defendant in the case was because he statutorily offers oversight legal advice function and represents the Federal Government, including the Accountant-General of the Federation.
It noted that the Accountant-General has the constitutional role of preparing the nation’s financial statements arising from collection and receipts of income, fees, rentals and taxes, as well as payments from the federation account.
“That the attorney general at all times is charged with legally advising and representing the Auditor-General of the Federation and the Revenue Mobilisation Allocation and Fiscal Commission that oversees revenue accruing to, and disbursement of such funds from the Federation Account,” it argued.
It accused the defendant of failing to properly advise the President, especially on how to ensure equitable distribution of resources in conformity with current realities, particularly with the enormous fiscal revenue generated by Niger State.
The plaintiff stressed that it is a purely agrarian state as its inhabitants are subsistence farmers whose produce are enjoyed across the state and beyond.
It contended that as a result of the large expanse of the land occupied by the dams, a large population of its citizens and residents are denied the opportunity of engaging in agricultural activities.
Niger state maintained that it has continued to host the dams that were established since 1968, decrying that despite its contributions in terms of revenue, it has been a victim of incessant and continuous flooding.
“This has resulted in wanton loss of human lives and livestock as well as destruction of properties, leading unavoidably to displacement of many residents from their homes,” it averred.
More so, the plaintiff claimed that Physicochemical/Microbiological Impact Assessment Report it conducted showed a high level of degradation in the affected areas.
“This represents an impending danger that looms large in the horizon for the state over the coming years if urgent stringent environment protection measures are not taken.
“To the chagrin, detriment, continuous exploitation and utter impoverishment of the people of Niger State, the defendant continuously and continually whisked off profits from the state.
“The federal government should not be only concerned about benefiting from the dams located in the territory of the state without a care for its people,” the plaintiff added.
More so, the plaintiff said it was unfortunate that the office of the National Bureau of Statistics(NBS), had no information on the volume of electricity by megawatts, generated by the dams since 1968 and 2019, except for those of 2020, 2021, 2022 and 2023.
It said the NBS computation of the volume of electricity by megawatts generated into the national grid from 2020 – 2023, was: “The sum total megawatt generated in 2020 is equal to 2,232,706.27, 2021 equal to 2,632,348.00, 2022 equal to 2,830,002.96 and in 2023 equal to 2,658,612.96.”
“These dams have generated fiscal revenue which has been controlled by the federal government and have been indisputably redistributed equally amongst the constituent states without considering the host (Niger State) since 1968 till date,” Ndarani, added.
He said the plaintiff, its citizens and residents suffered continuous exploitation, neglect and ravaging flood due to the power generating activities of FG and its agencies.
Consequently, the plaintiff prayed the apex court to intervene and order its inclusion in the 13% derivation.
In the meantime, no date has been fixed for the hearing of the suit.
Persecondnews reports that Delta State is one of the primary beneficiaries of the 13% derivation revenue in Nigeria, having received N1.14 trillion between 2022 and 2024, which accounts for approximately 40% of the total allocations to oil-producing states.
Akwa Ibom State received N659.21 billion over the same period, whilst Rivers State secured a total of N438.63 billion, comprising N169.79 billion in 2022, N137.48 billion in 2023, and N131.36 billion in 2024.
Other beneficiaries of the derivation revenue include Bayelsa State, which received N327.42 billion, Edo State, which received N87.52 billion, Ondo State with N73.66 billion, Imo State with N79.87 billion, Abia State with N17.32 billion, and Anambra State with N18.41 billion.
Kogi State has recently been added to the list of beneficiaries.
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