FG Expresses Dissatisfaction over Low Lottery Revenue

Dike Onwuamaeze

The federal government has expressed dissatisfaction over the lottery and gaming industry’s low contribution to its revenue in spite of the reports that the industry generated N250 billion in 2019.

The feeling of the federal government was conveyed to the industry by the Minister of Special Duties and Intergovernmental Affairs, Senator George Akume, in an address he delivered yesterday at the opening ceremony of a two-day National Gaming Conference hosted by the National Lottery Regulatory Commission (NLRC) in Lagos State.

The theme of the conference is: ‘Repositioning the Nigerian Gaming Industry for Better Performance and Revenue Enhancement for Stakeholders in the 21st Century’.

Akume said the federal government would soon introduce measures, including the Central Monitoring System (CMS), for the gaming industry, in order to stem the poor contribution of the industry to government’s efforts to diversify its revenue sources and lift 100 million Nigerians out of poverty.

He said the government felt sad that revenue from the lottery industry has continued to fall short of its potential and expectations in spite of the creation of the NLRC in 2005 to enable the government to properly organise the operation of lottery business that was hitherto an all-comers affair.

The minister asked: “Where is the revenue generated from the gaming transactions in Nigeria? The 2019 reports indicated that gaming industry in Nigeria, including international stakeholders, generated in excess of N250 billion. Yet revenues to the government did not exceed N1 billion for the same year. This is not only disappointing, it is unsustainable and unacceptable.

“Various stakeholders have made effort to enhance revenue generation for the government through the lottery/gaming industry. However, it is saddening to note that lottery revenues have continued to fall short of the industry’s potential and expectations largely due to various conflicts of interest.”

Akume said the dismal contribution of the lottery industry to the federal purse begged the following questions: “Why is the gaming industry not doing more? Why has the industry contributed less than N10 billion to the National Lottery Trust Fund (NLTF) in the last 10 years? Why are well-known revenue generating measures not implemented? Where are the national and other foreign games? Where is the central monitoring system? Where is the enforcement against illegal gaming operations in Nigeria?”

Akume stated that the potential for optimal performance of the industry have been as glaring as its challenges.

He pointed out that Nigeria is a country of over 200 million with a vibrant youth majority and citizens who are among the world’s most passionate sports fans in supporting global sporting event, stating that: “Consequent upon this and in line with the 2021 Appropriation Act, the government has considered acquiring the CMS for the gaming industry in Nigeria.

“The CMS will enable the commission and its sister agency, the NLTF, to perform maximally in their regulatory functions and provisions of lottery good causes to Nigeria.”

On his own, the Director-General of the NLRC, Mr. Lanre Gbajabiamila, said the commission is committed to sustainable, transparent gaming driven by principles of responsible gaming, professionalism and leading technologies for social and economic development to meet the diverse needs of the stakeholders.

However, the Founder of Law Alianz, Mr. Yahaya Maikori, said in his keynote address at the conference that Nigeria should adopt the South African model to develop a vibrant lottery/ gaming industry in the country.