The Niger State Government has dragged the Federal Government to the Supreme Court seeking redress for its exclusion from the 13 percent derivation benefits allocated to resource-producing states in the country
In an originating summons filed through its legal team led by Mohammed Ndarani SAN the state named the Attorney-General of the Federation and Minister of Justice as the sole defendant in the suit
Constitutional Interpretation Sought
The plaintiff asked the court to determine whether Niger State qualifies as a natural resource-producing state and should therefore benefit from the 13 percent derivation under Section 162(2) of the 1999 Constitution as amended
It also prayed the court to interpret and apply Sections 232(1) and (2) of the Constitution in support of its inclusion and to enforce compliance with the Allocation of Revenue Federation Account Act 2004
Hydropower Contributions Ignored
Niger State alleged that the Federal Government has failed to include proceeds from fiscal revenue generated through hydropower dams located in the state among resources eligible for derivation
According to the suit the state hosts four major hydroelectric power stations
Kainji Dam
Jebba Dam
Shiroro Dam
Zungeru Dam
These power stations it said have contributed significantly to national electricity supply and even support power export to neighbouring countries such as the Republics of Benin Togo and Niger
AGF Named Sole Defendant for Oversight Role
The state explained that it listed the Attorney-General of the Federation because he is constitutionally empowered to offer legal advice to the federal government and represent all its entities including the Accountant-General of the Federation
It added that the Accountant-General prepares the nation’s financial records while overseeing income fees rentals and taxes including revenue disbursed from the Federation Account
The suit stated
“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”
Calls Out FG for Neglecting Host Community
Niger State accused the defendant of failing to advise the President properly especially in ensuring equitable distribution of national wealth in light of Niger’s contributions to the economy
It described itself as a purely agrarian state with subsistence farmers who have lost access to productive land due to dam construction
“As a result of the large expanse of land occupied by the dams a large population of its citizens and residents are denied the opportunity of engaging in agricultural activities” it stated
The state further claimed that despite hosting dams since 1968 it continues to suffer from regular flooding with loss of human lives livestock and properties and the displacement of residents
Environmental Degradation and Exploitation Alleged
The suit cited findings from a Physicochemical and Microbiological Impact Assessment Report which revealed high levels of environmental degradation in the affected areas
It warned
“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”
The plaintiff also accused the federal government of continual exploitation and impoverishment of Niger people
“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”
It stated that the National Bureau of Statistics NBS could not provide data on megawatts of electricity generated by the dams between 1968 and 2019 except for 2020 to 2023
NBS data as referenced by the state showed the following power outputs
2020 – 2232706.27 megawatts
2021 – 2632348.00 megawatts
2022 – 2830002.96 megawatts
2023 – 2658612.96 megawatts
Equal Distribution Without Recognition of Host
Ndarani SAN argued
“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”
He added that the state its citizens and residents continue to suffer neglect exploitation and displacement while their land is used to generate power for the rest of the nation
Plaintiff Urges Supreme Court to Intervene
As such Niger State urged the Supreme Court to intervene and order its inclusion among states entitled to 13 percent derivation benefits
No Hearing Date Yet
As at the time of this report no date has been fixed by the Supreme Court for the matter to be heard
This suit may set a precedent on whether non-oil resource contributions such as hydroelectricity should attract derivation rights Similar concerns have been raised in recent years about the need to broaden the definition of resource-producing states especially in a transitioning energy economy where hydropower and solid minerals are gaining relevance