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.