Finance
21 Governors Face Backlash Over Moves to Abolish National Lottery Commission
The International Institute of Experts on Political Economy and Administration, has condemned the actions of 21 state governors who have taken the Federal Government to the Supreme Court in a bid to scrap the National Lottery Regulatory Commission (NLRC) and the Nigeria Lottery Trust Fund (NLTF).
The move has sparked widespread criticism, with many seeing it as a threat to a major source of federal revenue.
Executive Vice President for Africa Affairs at the institute, Professor Tunji John Asaolu, while addressing a press conference on Monday in Abuja expressed concern that the legal action is a deliberate attempt to weaken federal oversight in the gaming and betting industry, a sector that contributes significantly to the country’s revenue base.
He pointed out that the funds generated by the lottery are shared monthly among all 36 states and the Federal Capital Territory (FCT). Meanwhile, 16 states have openly supported the federal government’s role in collecting and managing the funds.
Expantiating further on the benefits he said,
“The NLRC and NLTF together employ over 20,000 workers and play a crucial role in regulating the gaming and betting sector, ensuring compliance and proper revenue collection for national benefit,”
Explaining further he indicated that the agencies were established by the National Assembly to serve the interests of all Nigerians, adding that their existence is essential for maintaining order and transparency in the industry.
He further explained that certain lottery operators, many of whom are foreign-owned, have long avoided paying the required 27.5% and 25% of their revenues to the government, depriving the nation of much-needed funds.
This he said, has led to recent reforms under President Bola Ahmed Tinubu’s administration, which aims to automate the lottery revenue system, ensuring greater transparency and accountability.
“Foreign-owned operators like BetNaija (Russian-owned), Ghana Games, and Baba Ijebu (Australian-owned) have been able to evade full payments, but President Tinubu’s push for automation in the lottery sector will bring an end to these practices and boost the country’s revenue base,” Asaolu stated.
There are also claims that lottery operators have pooled over 200 billion naira, allegedly stationed in Rwanda, with intentions to influence judicial workers ahead of the Supreme Court ruling.
However, Asaolu expressed confidence in the judiciary, stating, “The justices of the Supreme Court are individuals of integrity who will resist any form of manipulation.”
Asaolu added that these lottery operators, fearing tighter regulation, are behind the push by the 21 state governments to dismantle the federal lottery agencies.
“The operators fear stricter federal oversight, particularly as agencies like the Economic and Financial Crimes Commission (EFCC) are closing in on them. Their strategy is to weaken regulation through state-led actions,” he noted.
The controversy over the National Lottery Commission mirrors other efforts by states like Kogi to challenge the existence of federal institutions, including the EFCC, which has recovered billions of naira for the country.
Asaolu reaffirmed his institute’s confidence in the Nigerian judiciary to uphold public interest and ensure that justice is served.
“Lottery revenues, like oil revenues and VAT, should remain under federal control and be shared equitably among all states,” Asaolu concluded. He commended President Tinubu’s dedication to reforming the lottery sector and promised continued support for his administration’s efforts to combat corruption and improve revenue collection.
“We stand with President Tinubu in his fight to secure greater revenue for the nation, and we remain committed to supporting his administration in delivering the best outcomes for all Nigerians,” Asaolu added.
The Federation Account Allocation Committee (FAAC) convened in October 2024 under the leadership of Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to distribute a total of N1.298 trillion to Nigeria’s three tiers of government for the month of September 2024, sourced from a gross revenue of N2.298 trillion.
The allocation breaks down as follows: the Federal Government received N424.867 billion, States were allocated N453.724 billion, Local Government Councils obtained N329.864 billion, and Oil Producing States received N90.415 billion as Derivation (13% of Mineral Revenue). Additionally, N80.993 billion was set aside for the cost of collection, with N878.946 billion earmarked for Transfers, Interventions, and Refunds.
The communiqué highlighted that the Gross Revenue from Value Added Tax (VAT) amounted to N583.675 billion, showing an increase from N573.341 billion in the prior month. Of this, N543.518 billion was distributed among the three levels of government, including N81.258 billion for the Federal Government, N271.759 billion for States, and N190.231 billion for Local Government Councils.
For the Gross Statutory Revenue, N1.043 trillion was reported, a decrease from N1.221 trillion in August. From this, N862.136 billion was allocated for Transfers and Refunds, leaving N124.718 billion distributed to the three tiers of government: N43.037 billion for the Federal Government, N21.829 billion for States, and N16.829 billion for Local Government Councils.
Additional allocations included N19.213 billion from the Electronic Money Transfer Levy (EMTL) and N462.191 billion from Exchange Difference. The Augmentation of N150 billionllwas shared as well, with the Federal Government receiving N70.020 billion.
While revenues from Oil and Royalty, Excise Duty, and EMTL increased, VAT and Import Duty saw only modest growth, and significant declines were noted in Petroleum Profit Tax (PPT) and Company Income Tax (CIT).
The balance in the Excess Crude Account (ECA) stood at $473.754 million as of October 2024.
Minister Edun, in his opening remarks, reiterated the commitment of the Tinubu administration to policies aimed at enhancing revenue generation and improving the well-being of Nigerians.
The Federal Government has rolled out strategic measures with the aime of stabilizing the economy, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun has indicated.
During an interation with reporters at the State House Abuja, following the inauguration of the Presidential Economic Coordination Council (PECC) by President Bola Ahmed Tinubu, Thursday, Edun disclosed that the plan will also Strengthen the economy, create jobs and improve the general well-being of Nigerians
A statement by the director of Information and Public Relations Mohammed Manga, quoted the Minister to have provided a detailed explanation of the sectors set to receive emergency funding. “These sectors include Health, Agriculture, Energy/Power, as well as other key areas.
He said, “The President has just inaugurated the Presidential economic Coordination Council (PECC) and that is a body that is made up of the President’s Economic Management Team, the Legislature, represented by the leaders of the National Assembly; the Senate President and the Speaker of the House of Representatives, as well as very importantly, the sub-nationals, represented by the chairman of the Nigerian Governors Forum, and, of course, the elite of the private sector.”
Edun stated that they were presented with the outcomes of the President’s review of the accelerated stabilization and advancement plan.
That he said was an emergency plan to cover the next six months, which Mr. President had directed that a combination of his own Economic Management Team and the sub nationals, the governor’s level, and the private sector put together for his consideration.
He added that in addition to a range of policy measures and tax measures, there is a range of executive orders which Mr. President has signed and which are being gazetted to ease the cost of doing business at this particular time
He expressed optimism that the intervention will drive economic growth, create jobs and improve the overall well-being of Nigerians.
The three tiers of government have shared a total sum of N1,143.210tr at the Federation Account Allocation Committee (FAAC)’s June 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
This was from the Federation Allocation for the month of May, 2024 out of a gross total of N2,324.792 Trillion.
Director of Information and Public Relations, Mohammed Manga in a statement gave the breakdown as follows: From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED), the Federal Government received N365.813 Billion, the States received N388.419 Billion, the Local Government Councils got N282.476 Billion, while the Oil Producing States received N106.502 Billion as Derivation, (13% of Mineral Revenue).
According to him, the sum of N76.647 Billion was given for the cost of collection, while N1104.935 Billion was allocated for Transfers Intervention and Refunds.
The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of May 2024, was N497.665 Billion as against N500.920 Billion distributed in the preceding month, resulting in a decrease of N3.255 Billion.
From that amount, the sum of N19.907 Billion was allocated for the cost of collection and the sum of N14.333 Billion given for Transfers, Intervention and Refunds. The remaining sum of N463.425 Billion was distributed to the three tiers of government, of which the Federal Government got N69.514 Billion, the States received N231.713 Billion, Local Government Councils got N162.199 Billion.
Accordingly, the Gross Statutory Revenue of N1,223.894 Trillion received for the month was lower than the sum of N1,233.498 Trillion received in the previous month of April 2024 by N9.604 Billion. From the stated amount, the sum of N56.109 Billion was allocated for the cost of collection and a total sum of N1,010.602 Trillion for Transfers, Intervention and Refunds.
The remaining balance of N157.183 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N61.010 Billion, States received N30.945 Billion, the sum of N23.857 Billion was allocated to LGCs and N41.371 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N15.777 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.272 Billion, States got N7.573 Billion, Local Government Councils received N5.301 Billion, while N0.631 Billion was allocated for Cost of Collection.
The Communique also disclosed the sum of N587.456 Billion from Exchange Difference, which was shared as follows: N80.000 Billion allocated Transfers, Intervention and Refunds, leaving a balance of N507.456 Billion of which the Federal Government received N233.017 Billion, States got N118.189 Billion, the sum of N91.119 Billion was allocated to Local Government Councils, N65.131 Billion was given for Derivation (13% of Mineral Revenue).
Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), increased significantly, Import and Excise Duties, Royalty Crude and Gas, Customs External Tarrif levies (CET),
Electronic Money Transfer Levy (EMTL), and Value Added Tax (VAT) recorded considerably decreases.
According to the Communique, the total revenue distributable for the current month of May 2024, was drawn from Statutory Revenue of N157.183 Billion, Value Added Tax (VAT) of N463.425 Billion, N15.146 Billion from Electronic Money Transfer Levy (EMTL), and N507.456 Billion from Exchange Difference, bringing the total distributable amount for the month to N1,143.210 Trillion.
The balance in the Excess Crude Account (ECA) as at May 2024 stands at $473,754.57.
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