The Supreme Court of Nigeria has nullified the National Lottery Act 2005, ruling that the National Assembly lacked the constitutional authority to legislate on lottery and games of chance for states. This decision, delivered on Friday, was unanimous among the seven-member panel led by Justice Uwani Abba-Aji.
Justice Mohammed Idris, who delivered the lead judgment, stated that matters related to lottery are outside the jurisdiction of the National Assembly under the 1999 Constitution. The court determined that these issues fall exclusively within the legislative powers of state Houses of Assembly.
The ruling clarified that the National Assembly could only make such laws for the Federal Capital Territory (FCT), over which it has legislative authority. Consequently, the court declared that the provisions of the National Lottery Act 2005 should no longer be applied in any state of the federation.
Origins of the Legal Dispute
The judgment concluded a 15-year legal battle initiated in 2008 by the Lagos State Government, challenging the federal government’s control over the gaming and lottery sector. The suit, later joined by all 36 states, listed the Attorney-General of the Federation (AGF) and the National Assembly as respondents.
The legal tussle centred on whether the gaming and lottery sector should fall under the Exclusive Legislative List, Concurrent Legislative List, or Residual Legislative List as defined by the Nigerian Constitution. The court ultimately resolved that lottery regulation belongs exclusively to the Residual Legislative List, which limits legislative authority to state Houses of Assembly.
Court’s Key Rulings
The Supreme Court ruled that the provisions of sections 17, 18, 19, 20, and 21 of the National Lottery Act are inconsistent with the constitution. These provisions, which previously allowed the federal government to regulate lotteries nationwide, were declared invalid.
An order of perpetual injunction was also issued, restraining the Attorney-General of the Federation and any federal agencies from implementing or enforcing the provisions of the National Lottery Act within the states.
The court affirmed that the regulation of lottery operations and related matters is the exclusive responsibility of state governments, with Lagos State and other states now having full authority to legislate and control lotteries within their territories.
Conflicting Lower Court Decisions
Before the Supreme Court’s final decision, the issue had led to conflicting rulings in lower courts. In July 2023, a Federal High Court in Lagos ruled in favour of the federal government, stating that the National Assembly had the authority to legislate on lotteries under the Exclusive Legislative List. However, the Lagos State High Court later ruled that lottery matters belonged to the Residual Legislative List, supporting the position that states had exclusive jurisdiction.
The Supreme Court’s decision has now resolved the longstanding dispute, overturning the federal government’s claims and affirming the states’ authority.
Implications of the Judgment
The ruling has significant implications for the regulation of gaming and lottery businesses across Nigeria. State governments now have exclusive control over the industry within their jurisdictions, while the National Assembly’s authority is limited to the Federal Capital Territory.
It remains uncertain whether new legislation will be proposed by the National Assembly to regulate lotteries in Abuja following the court’s decision.
The panel of justices, including Mohammed Lawal Garba, Emmanuel Agim, Simon Tsammani, Stephen Adah, and Jamilu Tukur, unanimously agreed with the judgment, providing a definitive conclusion to the protracted legal battle.