The Niger State Government has instituted a legal action at the Supreme Court against the Attorney-General of the Federation and Minister of Justice over its exclusion from the 13 percent derivation fund.
In the originating summons filed by its counsel, Mohammed Ndarani, SAN, the state is seeking judicial interpretation and enforcement of Sections 232 (1) & (2) and 162(2) of the 1999 Constitution, as well as relevant provisions of the Allocation of Revenue (Federation Account, etc.) Act, 2004.
The state is asking the apex court to declare that Niger qualifies as a resource-producing state and should therefore benefit from the 13 percent derivation fund.
Central to its argument is the state’s role in hosting four major hydroelectric power stations Kainji, Jebba, Shiroro, and Zungeru Dams which contribute significantly to national electricity supply.
The suit contends that despite these contributions, the federal government has failed to recognize Niger State as a beneficiary of the derivation fund since the inception of hydroelectric power generation in the country dating back to 1968.
Ndarani further argued that the dams not only serve domestic electricity needs but also enable Nigeria to supply power to neighbouring countries such as the Republics of Benin, Togo, and Niger. He maintains that the continued omission of Niger State from the derivation formula is unconstitutional and unjust.
The Attorney-General was named as the sole defendant in the suit due to his statutory responsibility for advising and representing the federal government and its agencies, including the Accountant-General of the Federation, who oversees national financial statements and revenue distributions from the Federation Account.
The Supreme Court is expected to set a date for hearing the case, which could have significant implications for resource-revenue sharing and derivation entitlements in Nigeria.