Governor Umaru Bago of Niger State has taken a bold stand in demanding the payment of a 13% derivation fund, similar to other oil-producing states in Nigeria.
The governor made the demand during a meeting with the Federal Commissioner of the National Commission for Refugees, Migrants, and Internally Displaced Persons, Tijani Aliyu, in Minna on Monday.
Bago firmly believes that Niger State, despite not being traditionally classified as an oil-producing state, should receive compensation for the hydrocarbon exchange taking place within its borders. He emphasized that the state deserved to be paid approximately N1 trillion for the resources flowing from Niger State to the Delta region.
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“We need 13 percent derivation for water supplied to the Delta. Our people are ravaged and displaced year in, year out because of the flow of water from the Niger to the Delta,” he stated, highlighting the environmental impact and hardships faced by Niger State’s residents.
Bago’s demands are not limited to financial compensation. He urged relevant entities, including the Federal Government, Abuja Electricity Distribution Company (AEDC), and the Nigerian National Petroleum Corporation (NNPC), to acknowledge the contributions of Niger State and pay their dues.
“The Federal Government will pay Niger State N1 trillion in the next three months for hydrocarbon exchange; they must. We have provided this country with hydropower for a long time; nobody is compensating us for it,” the governor asserted.
Bago’s resolve appears unwavering, as he warned that Niger State would take drastic measures to ensure its demands are met.
“We have woken up; we can never ever tolerate being neglected or abandoned again. The only way we can ensure that the federal government heeds to us is to shut down the hydro dams unless we are paid,” he threatened.
He continued, “We are serious about this, it is not a threat; it is a statement. Every dime that is due to us, we will take it, we will take every kobo that is for Niger State. We are not going to be marginalized again; our waters, our lands, our borders are strengths for us and not weaknesses.”
The governor emphasized that every resource originating from Niger State must be compensated, and the state will not tolerate being overlooked any longer. He announced, “We are going to the Supreme Court, and we will take the Federal Government to the Supreme Court unless the 13 percent derivation from our land, water, air, grass, and everything given to us is paid. We must be compensated. Our people have done enough for Nigeria.”
Governor Bago’s demands have once again brought to the fore the issue of fiscal federalism, which has been advocated for years. While Niger State’s determination to secure its rightful share of the hydrocarbon exchange brought attention to a broader conversation about fairness and recognition for all contributing regions in Nigeria, the demand for 13% derivation has raised eyebrows.
Many believe that Bago’s demand is unrealistic given that about 80% of Nigeria’s power generation comes from gas-fired power plants while hydro is about 20%.