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Allocation: Niger State drags FG to court over 13% derivation

Afolabi Hakim by Afolabi Hakim
July 31, 2025
in National
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  • The State government seeks the apex Court determination on if its status as federating unit meets the requirement to be categorised among the states that produce natural resources

The Niger State government has instituted legal action against the Federal Government over its exclusion from the list of states entitled to 13 per cent derivation.

In the suit filed at the Supreme Court by its counsels led by Mr. Mohammed Ndarani, SAN, Niger State listed the Attorney-General of the Federation and Minister of Justice as the sole defendant in the case.

In the originating summons, the State government seeks the apex Court determination on whether its status as a federating unit meets the requirement to be categorised among the states that produce natural resources and therefore is entitled to 13 per cent derivation within the meaning of 162(2) of the 1999 Constitution, as amended.

It also prayed the court to interpret and apply section 232 (1) & (2) of the Constitution to compel its inclusion by the Federal Government, in line with the Enactment of Allocation of Revenue (Federation Account, etc.) Act, 2004.

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The state alleged a failure to include remittances from proceeds of fiscal revenue generated and accrued through hydroelectric power dams within its territory, which it argued formed part of resources it contributes to the overall electricity generation to the national grid since 1968.

According to the plaintiff, it hosts four major hydroelectricity dams – Kainji Dam, Jebba Dam, Shiroro Dam and Zungeru Dam – which serve as sources of electricity supply to various states in the country.

It argued that through these power stations, the Federal Government electricity supply to the Republics of Benin, Togo and Niger

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