Niger State Sues FG at Supreme Court for Exclusion from 13% Derivation Fund
Abuja, Nigeria – August 1, 2025
Niger State has taken the Federal Government to the Supreme Court, contesting its exclusion from the 13% derivation fund, despite hosting several major hydroelectric power dams. The originating suit names the Attorney-General of the Federation (AGF) as the sole defendant.🔍 Legal Basis: Article 162 and Revenue Act Interpretation
The suit, filed by SAN Mohammed Ndarani, cites Sections 232(1) & (2) of the 1999 Constitution (as amended) and the Allocation of Revenue (Federation Account, etc.) Act, 2004. It seeks a constitutional interpretation confirming whether Niger State qualifies as a resource-producing state under Section 162(2), thereby entitling it to derivation revenues.
Niger’s Power-Generating Claims
Ndarani highlighted that Niger hosts four major dams—Kainji, Jebba, Shiroro, and Zungeru, contributing significantly to Nigeria’s electricity supply and even exporting power to Benin, Togo, and the Niger Republic. Despite this, Niger State has never received derivation allocations tied to these resources.
Environmental & Economic Losses
The state also complained that dam construction submerged fertile lands, displacing subsistence farmers and causing recurring flooding. Impact assessments revealed severe environmental degradation. Meanwhile, hydropower revenues have benefited the federation at the expense of host communities.
Data Gaps Highlighted
Ndarani criticized the National Bureau of Statistics (NBS) for lacking foundational data on electricity production from 1968 to 2019. Available figures from 2020–2023 alone show the dams contributed an estimated 10 million megawatts to the grid, reinforcing the claim for compensatory derivation revenues.
