"Pay Us": Niger State Govt Threatens to Shut Down Kainji Dam, Others, Makes Demands To FG

"Pay Us": Niger State Govt Threatens to Shut Down Kainji Dam, Others, Makes Demands To FG

  • Niger State is calling on the federal government to include the state on the list of beneficiaries of FG's 13% derivative
  • The governor of the state demands the payment of N1 trillion in compensation for the hydrocarbon exchange
  • He said the residents are ravaged and displaced year in, year out because of the flow of water from the Niger to the Delta.

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market

Niger State is demanding payment of a 13% derivation fund currently enjoyed by oil-rich states be extended to the state.

Umaru Bago, Governor of Niger State made the demand when he received Federal Commissioner of the National Commission for Refugees, Migrants, and Internally Displaced Persons, Tijani Aliyu, in Minna on Monday, 6th November 2023.

Niger State threatens to shut down Kainji dam
Niger State is demanding payment of a 13% derivation fund be extended to the state. Photo Credit: BBC, Niger Govt
Source: UGC

Niger State needs compensation

He argued that the state should be paid about N1 trillion in compensation for the hydrocarbon exchange it shares with states in the Delta region.

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As contained in a Guardian report, the governor noted that the state needs 13% derivation for water supplied to the Delta. He added that residents are ravaged and displaced every season because of the flow of water from the Niger to the Delta.

“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.”

According to him, Abuja Electricity Distribution Company (AEDC) and Nigerian National Petroleum Corporation (NNPC) must pay as well because they have consumed from Niger state hydrocarbon exchange.

The governor said that for a long time, the state has been neglected but such will not continue to be the case. He said the only way to ensure “the federal government needs to us is to shut down the hydro dams unless we are paid.”

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“We are not going to be marginalized again; our waters, our lands our borders are strengths for us and not weaknesses.
“We demand compensation for our people. Everything, every resource that comes from Niger State must be compensated. We will not tolerate this anymore.

He, however, added that it is taking the federal government to the Supreme Court to ensure that the 13% derivative from its resources is given to them.

Notably, Niger State is endowed with four sizable dams namely; Kainji, Shiroro, Jebba, and Zungeru, which contribute to the electricity generation of neighboring nations and Nigeria. The Zungeru was just recently completed.

Top Nigerian States With Highest 13% Oil Derivations, SURE-P Refunds in 2022 as Govs List Projects

On Friday, December 2, 2022, the presidency released a total of N625.43 billion as 13 percent oil derivations, subsidy, and SURE-P refunds from the federation account between 2021 and 2022, Legit.ng reported.

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A statement by the senior special assistant to President Muhammadu Buhari, Garba Shehu, disclosed this on Friday.

Shehu said N1.1 trillion remains unpaid to the states. He named Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers states.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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