The Niger State Government has dragged the Federal Government before the Supreme Court over its exclusion from the 13% derivation benefit granted to resource-producing states.
In a suit filed through a team of lawyers led by Senior Advocate of Nigeria (SAN), Mohammed Ndarani, the state named the Attorney-General of the Federation (AGF) and Minister of Justice as the sole defendant.
The state is asking the apex court to determine whether it qualifies as a resource-producing state under Section 162(2) of the 1999 Constitution (as amended), and therefore entitled to a share of the 13% derivation. It also seeks an interpretation of Sections 232(1) & (2) to compel the Federal Government to include it in the derivation formula, in line with the Allocation of Revenue (Federation Account, etc.) Act of 2004.
Niger State argues that it has been unfairly excluded from derivation benefits despite hosting four major hydroelectric power dams—Kainji, Jebba, Shiroro, and Zungeru—that have generated electricity for the national grid since 1968.
The state claims these facilities significantly contribute to Nigeria’s power supply, including cross-border electricity to Benin, Togo, and the Niger Republic, yet it receives no fiscal compensation through the derivation mechanism.
According to the suit, the AGF was named as the defendant because of his statutory role in offering legal advice to the Federal Government and its agencies, including the Revenue Mobilization Allocation and Fiscal Commission and the Auditor-General of the Federation.
The plaintiff also pointed to the economic and environmental toll the dams have taken on the state, noting that large tracts of farmland have been submerged, depriving residents—many of whom are subsistence farmers—of their livelihoods. The state further decried the recurrent floods, displacement of communities, and destruction of lives and property linked to dam operations.
It submitted a Physicochemical and Microbiological Impact Assessment Report revealing environmental degradation in affected areas, warning of worsening conditions if urgent ecological protection measures are not adopted.
Niger State accused the Federal Government of exploiting its resources while neglecting its people. “To the detriment and impoverishment of Niger State, the defendant has continued to whisk away the profits generated by these dams,” the suit stated.
The plaintiff expressed concern that the National Bureau of Statistics (NBS) lacked data on electricity output from 1968 to 2019, though it noted figures for 2020 to 2023, which showed consistent power generation:
2020: 2,232,706.27 MWh, 2021: 2,632,348.00 MWh, 2022: 2,830,002.96 MWh, and 2023: 2,658,612.96 MWh
Despite this contribution, the state claims it has not received any corresponding derivation benefits from the Federation Account.
The suit urged the Supreme Court to declare Niger State eligible for the 13% derivation and to mandate the Federal Government to commence immediate remittances.
As of press time, no date has been set for the hearing.
