Niger State takes FG to Supreme courts over 13% derivation exclusion 

Niger State has filed a lawsuit against the Federal Government at the Supreme Court, challenging its exclusion from the list of states receiving 13% derivation revenue.

In the suit, submitted by a legal team led by Mohammed Ndarani, Senior Advocate of Nigeria (SAN), the state named the Attorney-General of the Federation (AGF) and Minister of Justice as the sole respondent.

The state is asking the court to determine whether Niger qualifies as a resource-producing state under Section 162(2) of the 1999 Constitution (as amended) and is therefore entitled to the 13% derivation allocation.

It also asked 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.

According to Niger State, the Federal Government has failed to account for revenues 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.

Source: Businessday.ng | Continue to Full Story…