Supreme Court nullifies National Lottery Act 2005
In a landmark ruling, the Supreme Court of Nigeria has struck down the National Lottery Act of 2005, declaring that the National Assembly does not have the constitutional authority to legislate on matters concerning lotteries and games of chance.
The judgment,6 delivered by Justice Mohammed Idris on behalf of a seven-member panel, has significant implications for the regulation of the gaming sector in Nigeria.
The Court held that jurisdiction over lotteries and games of chance rests solely with state Houses of Assembly, not the National Assembly.
This means that the National Assembly’s National Lottery Act is no longer valid or enforceable in the states, although it will still apply in the Federal Capital Territory (FCT), where the National Assembly retains the power to make laws.
This ruling stems from a 2008 legal dispute, initiated by the Attorney General of Lagos State, which challenged the Federal Government’s control over Nigeria’s gaming and lottery sector.
In the course of the legal proceedings, Ekiti State was joined as a co-plaintiff, and on 15th November 2022, the Supreme Court included the attorneys general of 34 other states as defendants.
The plaintiffs argued that the National Assembly had exceeded its powers by enacting the National Lottery Act 2005, as lotteries do not fall within the 68 items listed under the exclusive legislative powers of the National Assembly, as outlined in the Second Schedule of the 1999 Constitution.
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They sought a declaration that the regulation of lotteries and gaming is a matter solely under the jurisdiction of the state governments.
The Supreme Court’s unanimous decision in favor of the plaintiffs means that state governments now have the exclusive authority to regulate, control, and legislate on matters related to lotteries and games of chance within their territories.
The judgment also means that the National Lottery Act is no longer applicable across Nigeria, except for the FCT, which is directly under the legislative control of the National Assembly.
According to the ruling, the National Lottery Act 2005, which has been in force for nearly two decades, can no longer be enforced in Nigeria’s states. However, it remains in effect in the Federal Capital Territory (FCT), where the National Assembly maintains legislative authority.
The Supreme Court ruling is expected to reshape the landscape of the lottery and gaming industry in Nigeria, as states will now be responsible for drafting their own laws and regulations for the sector.
This decision could lead to greater autonomy for states in managing and benefiting from the gaming industry, potentially resulting in different regulatory frameworks across the country.
The case that led to this ruling started when Lagos State’s Attorney General filed the lawsuit in 2008, arguing that the regulation of lotteries should fall under state jurisdiction rather than federal.
The legal battle saw several other states, including Ekiti, joining as plaintiffs and the federal government defending the National Lottery Act.
The Court’s ruling clarifies that the National Assembly does not have the constitutional right to regulate lotteries or impose laws governing the sector, effectively decentralizing the regulation of lotteries in Nigeria.
This decision has broad implications for the gaming industry and may lead to legal and policy changes at the state level.
As Nigeria moves forward, states now have the opportunity to introduce their own laws governing the lottery and gaming industries, potentially leading to increased state-level control over these sectors and their revenues.
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