Niger Govt’s Agitation on Derivation Law

In what is considered as an interesting suit, the Niger State Government recently stirred up controversy when it dragged the federal government to the Supreme Court over the state’s omission from the 13 per cent derivation over the power being generated in the state.

In the suit before the apex court, the state government, through its counsel, Mohammed Ndarani (SAN), asked for the interpretation and application of section 232 (1) & (2) of the 1999 Constitution.

The suit also seeks to include the state in the 13 per cent derivation, as enshrined in the Enactment of Allocation of Revenue (Federation Account, etc.) Act, 2004. He wants the court to determine whether Niger State does not qualify to be classified among the states that produce natural resources and therefore are entitled to 13 per cent derivation within the meaning of 162(2) of the 1999 Constitution.

The suit concerns the federal government’s alleged failure to include the state among the beneficiary states of the 13 per cent derivation.

Ndarani argued that the state hosts four major hydroelectricity dams: Kainji Dam, Jebba Dam, Shiroro Dam and Zungeru Dam, which serve as a power house for electricity supply to various states in Nigeria, as well as the Republics of Benin, Togo and Niger.

The learned silk averred to the fact that Niger State is a purely agrarian state as the inhabitants are subsistence farmers whose produce are enjoyed across the state and beyond. He noted that as a result of the large expanse of the land occupied by the dams, a large population of the citizens and residents of Niger State are denied the opportunity of engaging in agricultural activities.

Even while the suit has not been heard, many in the Niger Delta have asked the court to dismiss it in its entirety, saying that there was nothing natural about the power projects because both the construction and the power generation were made possible with oil money from their region.

While many feel that Niger State is on a wild goose chase, others are anxiously waiting to see the outcome of the suit.