NIGER SUES FG OVER 13 PERCENT DERIVATION FUND

BY OWOLABI OLUWADARA

The Niger State Government has initiated legal proceedings against the Federal Government in the Supreme Court to contest its exclusion as a recipient of the 13 percent derivation.

The government, in the initial petition it submitted through its legal team headed by Mr. Mohammed Ndarani, SAN, identified the Attorney-General of the Federation and Minister of Justice as the exclusive respondent in the matter.

The plaintiff, among other things, urged the apex court to determine whether Niger State does not qualify to be classified among the states that produce natural resources and therefore is entitled to 13 percent derivation within the meaning of 162(2) of the 1999 Constitution, as amended.

It further prayed the court to interpret and apply section 232 (1) & (2) of the Constitution to compel its inclusion by FG, in line with the Enactment of Allocation of Revenue (Federation Account, etc.) Act, 2004.

The state claimed a negligence in the omission of payments derived from revenues generated and accumulated through Hydroelectric Power facilities located within its jurisdiction, which it contended constituted a portion of the resources it provides to the comprehensive electricity production for the national grid since 1968.

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 government stated that its determination to identify the AGF as the exclusive defendant in the case was due to his statutory role of providing oversight legal counsel and representing 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 Mobilization Allocation and Fiscal Commission that oversees revenue accruing to, and disbursement of such funds from the Federation Account,” it argued.

It alleged that the defendant neglected to adequately inform the President, particularly regarding the measures needed to guarantee fair allocation of resources in alignment with prevailing circumstances, especially given the substantial financial revenue produced 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 asserted that due to the extensive area of land utilized by the dams, a significant portion of its citizens and inhabitants are deprived of the opportunity to participate in agricultural endeavors.

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.

Home » News » Niger Appeals to Supreme Court Against FG Regarding 13% Derivation
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July 31, 2025

Niger Appeals to Supreme Court Against FG Regarding 13% Derivation
By Ikechukwu Nnochiri

ABUJA– The Government of Niger State has initiated legal proceedings against the Federal Government in the Supreme Court to contest its exclusion from the beneficiaries of the 13 percent derivation.

In the originating summons lodged by its team of legal representatives led by Mr. Mohammed Ndarani, SAN, the state has identified the Attorney-General of the Federation and Minister of Justice as the sole respondent in the matter.

The plaintiff, among other requests, has urged the apex court to ascertain whether Niger State should not be categorized with the states that yield natural resources and thus qualify for the 13 percent derivation as stipulated in 162(2) of the amended 1999 Constitution.

Furthermore, the state has sought the court’s interpretation and enforcement of sections 232 (1) & (2) of the Constitution to mandate the Federal Government to include it in accordance with the Enactment of Allocation of Revenue (Federation Account, etc.) Act, 2004.

The state has contended that it has been excluded from remittances derived from fiscal revenue generated through Hydroelectric Power dams situated within its jurisdiction, which it claims constitute a portion of the resources it contributes to the overall electricity supply to the national grid since 1968.

According to the plaintiff, it hosts four significant hydroelectric dams: Kainji Dam, Jebba Dam, Shiroro Dam, and Zungeru Dam, which function as a power source for electricity distribution to various states across the nation.

It maintained that through these power facilities, the Federal Government has extended electricity provision to the Republics of Benin, Togo, and Niger.

Niger State indicated that its choice to designate the Attorney-General as the sole respondent was due to his statutory role in providing oversight legal advice and representing the Federal Government, including the Accountant-General of the Federation.

It emphasized that the Accountant-General has the constitutional responsibility of preparing the nation’s financial statements stemming from the collection of income, fees, rentals, and taxes, as well as disbursements from the federation account.

“The Attorney-General is consistently tasked with providing legal counsel and representation for the Auditor-General of the Federation and the Revenue Mobilization Allocation and Fiscal Commission, which supervises revenue accruing to and the allocation of such funds from the Federation Account,” it asserted.

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The plaintiff accused the responding party of inadequately advising the President, particularly regarding the equitable distribution of resources in light of the significant fiscal revenue generated by Niger State.

The plaintiff underscored that it is predominantly an agrarian state, as its residents are subsistence farmers whose agricultural products are enjoyed both within the state and beyond.
It asserted that due to the extensive area occupied by the dams, a significant segment of its citizenry and inhabitants are deprived of the opportunity to participate in agricultural endeavors.

Niger State emphasized that it has continued to accommodate the dams that were constructed since 1968, lamenting that despite its contributions in terms of revenue, it has been subjected to persistent and ongoing flooding.

“This has led to considerable loss of human lives and livestock, as well as the destruction of property, unavoidably resulting in the displacement of numerous residents from their homes,” it stated.

Furthermore, the plaintiff asserted that the Physicochemical/Microbiological Impact Assessment Report it conducted revealed a substantial degree of degradation in the affected regions.

“This poses a looming threat to the state in the coming years if immediate and stringent environmental protection measures are not implemented.

“To the dismay and detriment of the continued exploitation and utter impoverishment of the people of Niger State, the defendant consistently extracted profits from the state.

“The federal government should not solely focus on benefitting from the dams situated in the state’s territory without regard for its residents,” the plaintiff added.

Furthermore, the complainant stated that it is regrettable that the National Bureau of Statistics (NBS) lacks data regarding the quantity of electricity measured in megawatts generated by the dams from 1968 to 2019, aside from the figures for 2020, 2021, 2022, and 2023.

The NBS assessment of the amount of electricity in megawatts contributed to the national grid from 2020 to 2023 is as follows: “The total megawatt produced in 2020 amounts to 2,232,706.27, in 2021 to 2,632,348.00, in 2022 to 2,830,002.96, and in 2023 to 2,658,612.96.”

“These dams have generated financial revenue that has been administered by the federal government and has been unequivocally distributed evenly among the individual states, disregarding the host state (Niger State) since 1968 to the present,” Ndarani, SAN, added.

He asserted that the complainant, along with its citizens and residents, has endured ongoing exploitation, negligence, and devastating flooding attributable to the power generation activities of the federal government and its agencies.

As a result, the complainant requested that the highest court intervene and mandate its inclusion in the 13 percent derivation.

Meantime, no date has been fixed for the matter to be heard