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Niger State drags AGF to court on sharing of derivation fund

Argues that State should qualify to be classified among the states that produce natural resources

Credible News by Credible News
August 1, 2025
in Conflict, Economy, Legal, News
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The Niger State government has dragged the Attorney-General of the Federation and Minister of Justice to the Supreme Court over its omission from the 13 per cent derivation fund.

In an originating summons sighted by the News Agency of Nigeria at the apex court, the Niger government through its counsel Mohammed Ndarani, SAN, seeks the interpretation and application of section 232 (1) & (2) of the Nigerian constitution.

The suit seeks the inclusion of Niger state in the 13 per cent derivation as enshrined in the Enactment of Allocation of Revenue (Federation Account, etc) Act, 2004.

The state wants the court to determine whether Niger State does not qualify to be classified among the states that produce natural resources and therefore entitled to 13 per cent derivation within the meaning of 162(2) of the 1999 constitution.

The subject matter of the suit is the failure of the Federal Government to include Niger among the beneficiary states of the 13 per cent derivation.

It is also about the omission of remitting same proceeds of fiscal revenue generated and accrued through Hydroelectric Power dams in Niger, the territory and part of the resources of Niger to the overall electricity generation to the national grid in Nigeria since 1968 till date.

Ndarani argued that the State hosts four major hydroelectricity dams: Kainji, Jebba, Shiroro and Zungeru, which serves as a powerhouse for electricity supply to various states in the country.

Also Read: National Assembly investigates revenue shortage through waivers

He also said that through these power stations, the Federal Government extends electricity supply to the Republics of Niger, Benin, Togo.

He averred that the attorney-general was brought before the apex court because he has an oversight legal advice function over advising and representing the Accountant-General.

The Accountant-General has the constitutional role of preparing the Nation’s Financial Statements arising from collection and receipts of income, fees, rentals, taxes, and payment out of the Federation Account.

That the attorney general always 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.

He said that the defendant represents and advises the president on all legal matters involving the functions of the president but has failed over the years in its duties.

This, according to him, should have been to ensure an equitable distribution of resources in conformity with the current realities, particularly, in relation to the enormous fiscal revenue generated by Niger.

The learned silk averred to the fact that Niger is a purely agrarian state as the inhabitants are subsistence farmers whose produce are enjoyed across the state and beyond.

He noted that because of the large expanse of the land occupied by the dams, a large population of the citizens and residents of Niger are denied the opportunity of engaging in agricultural activities.

He said that Niger, host to the dams, which were established in 1968 and have laid the golden eggs, has been a victim of incessant and continuous flooding in recent years and still counting

This has resulted in wanton loss of human lives and livestock as well as destruction of properties, leading unavoidably to displacement of many residents from their homes.

He claimed that Physicochemical/Microbiological Impact Assessment Report conducted by the state government showed the level of degradation in the affected areas.

This represents an impending danger for the state over the coming years if urgent environment protection measures are not taken.

To the chagrin, detriment, continuous exploitation and utter impoverishment of the people of Niger, the defendant continuously and continually whisked off profits from the state.

The Federal Government should not be only concerned about benefiting from the dams located in the territory of the state without a care for its people.

He said that unfortunately the office of National Bureau of Statistics had no information on the volume of electricity by megawatts generated by the dams since 1968 and 2019, except for those of 2020, 2021, 2022 and 2023.

They gave the NBS’s computation of the volume of electricity by megawatts generated into the national grid from 2020 – 2023 as follows:

“The sum megawatt generated in 2020 is equal to 2,232,706.27, 2021 equal to 2,632,348.00, 2022 equal to 2,830,002.96 and in 2023 equal to 2,658,612.96.

These dams have generated fiscal revenue which has been controlled by the federal government and have been indisputably redistributed equally among the constituent states without considering the host state since 1968.

Ndarani stated that Niger and its citizens and residents suffer continuous exploitation, neglect and ravaging flood owing to the power generating activities of the federal government and its agencies.

Conversely, the federal government continues to enjoy the profits from the dams, leaving the state in penury and misery. He added that the pitiable, miserable and hopeless plight of the Niger indigenes and residents alike cannot be over emphasised.

Despite all these, the federal government has also not paid attention to the adverse environmental impacts of the activities of the power generating companies at the dams.

He said that not even the National Environmental Standards and Regulations Enforcement Agency (NESREA), has put any programme in place to ameliorate the sufferings of the people of the state.

NAN

Tags: Derivation FundNiger StateRevenue Allocation
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