ABUJA, Nigeria — The Niger State Government has instituted legal action against the Attorney-General of the Federation (AGF) and Minister of Justice, challenging the exclusion of the state from the 13 percent derivation fund despite hosting key hydroelectric power infrastructure that supports Nigeria’s national grid.
In an originating summons filed at the Supreme Court, the state—through its counsel, Mohammed Ndarani (SAN)—is seeking judicial interpretation of Section 232(1) and (2) of the 1999 Constitution (as amended), along with the application of relevant provisions of the Allocation of Revenue (Federation Account, etc.) Act, 2004.
At the heart of the legal dispute is the claim that Niger State, home to four major hydroelectric dams—Kainji, Jebba, Shiroro, and Zungeru—should be recognised as a resource-producing state, and therefore eligible for 13% derivation revenue, just like oil-producing states in the Niger Delta.
The suit argues that since 1968, the operations of these dams have caused widespread damage to Niger’s environment and economy.
“The resources of these four dams since 1968 have erupted incessantly and spilt unquantifiable volume of hydrocarbon and other intoxicants, destroying aquatic lives, the ecosystem, aquaculture, fish farms, rice farms, yam farms, onion farms, houses and worship centres over these years unabated,” the court filing reads.
The state government claims to have suffered economic loss, displacement, and psychological trauma due to repeated flooding and other consequences of the dams’ operations.
It further asserts that federal authorities have reaped enormous fiscal benefits from the dams—including electricity exports to neighbouring countries such as Benin, Togo, and Niger Republic—while failing to compensate Niger State or include it in revenue-sharing frameworks.
Ndarani said the AGF is being sued in a representative capacity, given his constitutional role in advising federal institutions such as the Accountant-General, Auditor-General, and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
“The AGF has failed in his constitutional duty to ensure equity in revenue distribution and to advise the President on the legal responsibilities tied to Niger’s fiscal contributions,” Ndarani stated.
The state also raised concerns about the non-remittance of revenues generated from hydroelectric power to its coffers, alleging fiscal discrimination that has hampered Niger’s developmental prospects.
“Aside from the concerns raised relating to hydroelectric infrastructure sited in Niger State, the state has also continued to provide the nation with other mineral resources in commercial quantities,” the summons notes.
This legal action could set a precedent in how non-oil resource-producing states are treated within Nigeria’s complex fiscal federalism.
While oil-bearing states receive additional funds through derivation, there has been growing debate over whether states contributing other strategic resources—like hydropower—should benefit similarly.
No date has been fixed yet for the hearing of the matter. However, legal analysts suggest the outcome may have far-reaching implications for revenue allocation formulas and constitutional interpretation on resource ownership in Nigeria.
The AGF is yet to file a response.
