The Niger State Government has taken legal action against the Attorney-General of the Federation, bringing a case before the Supreme Court over what it calls a long-standing exclusion from the 13% derivation fund.
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In the case filed through its legal counsel, Mohammed Ndarani, SAN, the state is asking the apex court to interpret key sections of the Nigerian Constitution—particularly Section 232 (1) & (2) and Section 162 (2)—to determine whether Niger State qualifies as a resource-producing state, and therefore entitled to receive a share of the derivation fund as outlined in the 2004 Revenue Allocation Act.
At the heart of the case is Niger State’s claim that, despite hosting four of Nigeria’s major hydroelectric dams—Kainji, Jebba, Shiroro, and Zungeru—it has been excluded from the 13% derivation fund since 1968. These dams, the state argues, have not only generated significant electricity for Nigeria and even neighboring countries like Benin, Togo, and Niger but have also brought severe environmental and economic consequences to the host communities.
The state’s legal team contends that the dams have taken up vast areas of farmland, displaced thousands due to recurring floods, and degraded the environment—all while the profits from the generated power go to the federal government, with little to no compensation or consideration for Niger State and its people.
Ndarani emphasized that the exclusion has caused long-term hardship for residents, many of whom are farmers denied access to land and whose communities have faced repeated natural disasters tied to dam operations. He also criticized federal agencies, including the National Bureau of Statistics and NESREA, for failing to provide transparency or environmental support over the years.
He pointed out that while the National Bureau of Statistics only started reporting electricity output from the dams in 2020, figures show that millions of megawatts were added to the national grid annually—with no corresponding benefits going back to the state.
Niger State is asking the court to recognize it as a resource-producing state, arguing that the massive fiscal revenue generated by these dams qualifies it for derivation payments under the constitution.
According to Ndarani, the federal government cannot continue to enjoy the economic gains from these dams while ignoring the environmental and human costs borne by the host communities. He described the situation as “continuous exploitation,” and called for urgent intervention to correct decades of imbalance and neglect.
