The Niger State Government has taken legal action against the Attorney-General of the Federation (AGF) and Minister of Justice at the Supreme Court over its exclusion from the 13% derivation fund, seeking a constitutional interpretation and inclusion among beneficiary states.

In the originating summons filed at the apex court, counsel to the Niger State Government, Mohammed Ndarani (SAN), invoked Section 232 (1) & (2) of the 1999 Constitution to demand the inclusion of Niger State in the allocation structure under the Allocation of Revenue (Federation Account, etc.) Act, 2004.

Ndarani is asking the court to determine whether Niger State qualifies as a resource-producing state under Section 162(2) of the Constitution and, therefore entitled to the 13% derivation fund.

He argued that the federal government’s failure to list Niger State among the recipients of the derivation fund, despite the presence of four major hydroelectric power dams—Kainji, Jebba, Shiroro, and Zungeru—constitutes a denial of rightful benefits. These dams, he noted, have contributed significantly to national electricity supply and, by extension, fiscal revenue since their establishment, without commensurate compensation to the host communities.

According to him, electricity generated from these facilities is distributed to several Nigerian states and exported to neighboring countries such as Benin, Togo, and Niger Republic. Yet, Niger State remains excluded from the derivation benefits accrued from these resources.

He told the court that the AGF, as the federal government’s legal adviser and representative of key agencies such as the Accountant-General and the Revenue Mobilisation Allocation and Fiscal Commission, has failed to ensure equitable distribution of proceeds from national resources.

Ndarani described Niger State as largely agrarian, with most of its population engaged in subsistence farming. He said vast lands have been submerged or taken over by dams, depriving communities of their means of livelihood and exposing them to frequent flooding.

He cited a government-commissioned Physicochemical and Microbiological Impact Assessment that revealed serious environmental degradation around the dam areas.

He lamented the absence of environmental mitigation measures by the federal government and relevant agencies such as the National Environmental Standards and Regulations Enforcement Agency (NESREA).

“Not even a single program has been introduced to cushion the environmental effects of the dams,” he stated.

Ndarani also noted that despite contributing immensely to the national grid for decades, Niger State has been subjected to neglect, exploitation, and flooding without receiving any share of the derived revenue.

The Senior Advocate revealed that the National Bureau of Statistics (NBS) failed to provide historical data on power generation from 1968 to 2019, but confirmed that from 2020 to 2023, over 10 million megawatts were generated. These figures underscore the critical role of the dams and further bolster Niger State’s claim to derivation benefits.

He said that the continuous exploitation of Niger State’s natural resources without corresponding benefit is unjust and unsustainable, urging the Supreme Court to correct the decades-long oversight and ensure justice for the state and its people.