Transforming Gaming Activities with National Lottery

The National Lottery Nigeria, with its exciting and affordable games, is set to transform gaming activities in the country, writes Emma Okonji

Although there are several gaming companies in the country, the commencement of operation by the National Lottery Nigeria (NLN), will transform gaming activities in Nigeria and a game changer in the gaming industry.  

Operated by Systems and Gaming Nigeria Limited and regulated by the National Lottery Regulatory Commission (NLRC), the National Lottery will lead to transformational changes. 

Giving insight to how the expected transformational gaming industry will look like, while announcing the commencement of its operations during a media briefing in Abuja last month, the Managing Director of the NLN, Olayiwola Onafowokan, said: “The economic benefits of the National Lottery Nigeria are numerous. Apart from providing a valuable source of revenue for the government, it will also create jobs and encourage entrepreneurship through its various initiatives.”

He further said: “Many Nigerians will get a chance to step into fortune and change their lives forever. A percentage of the proceeds from ticket sales will also be allocated to various charitable causes, helping to make a positive difference in the lives of Nigerians.”

Comparison

An assessment of other climes, including the UK, showed that a national lottery, such as the NLN, can be beneficial and impactful. It can positively change winners’ lives while contributing significantly to socio-economic development. For instance, the National Lottery UK has created over 5,000 millionaires and raised above £40 billion for good causes. As of the year ending March 31, 2022, its funds went to areas including health, education, environment and charitable causes (40 per cent). Sports got 20 per cent, Arts 20 per cent and Heritage another 20 per cent.   

The NLN offering games, including the Naija Mega Jackpot with N45 million starting prize, the 6/49 lotto and other instant games where Nigerians can win up to N50,000 every hour, is modelling itself after the British fashion. It is not about profit making but giving back to society. It will boost national development and facilitate infrastructure development, which will go a long way in further empowering Nigerians. “Earnings from the lottery will be a boom for critical projects, including road construction, building and equipping hospitals, schools and others for the benefit of Nigerians, Onafowokan said.

According to him, “Our operations provide access to affordable and fun gaming experiences, allowing more people to win whooping amounts of money in prizes. Additionally, we areintroducing initiatives such as the ‘Good Causes Foundation’, which will help to facilitate development in various areas in the country and create more entrepreneurship and job opportunities for Nigerians. The National Lottery Nigeria will increase revenue for the government to fund other vital projects.”

Lottery Challenges

In a 2017 publication titled: ‘The Nigeria Gaming Industry,’ PricewaterhouseCoopers (PwC), noted that though the industry thrived, benefited from the large and youthful population, improved internet penetration, and increased access to internet-enabled devices, it had some challenges. These include regulation, taxation, cyber–security, foreign exchange issues, the negative impact of gaming and ineffective management structures and poor corporate governance.  

The report expatiated on the last challenge to include ineffective management structures and poor corporate governance.

According to the report, “Some operators within the gaming industry lack inadequate structures to support the model of the business. A number of the companies that make up the gaming space evolved from the old pool culture and these businesses were managed with limited financial knowledge depending on the clientele base. Thus, significant losses arise due to failure to accurately determine the odds, expansion strategy, tax planning, etc. Without good management structures or clearly defined strategies for the business, operators struggle to fulfil obligations, expand and attract foreign direct investment at the right price.”

The Game Changer

Having highlighted the challenges of lottery, Onafowokan however said this would be different from the National Lottery Nigeria Systems and Gaming Nigeria Limited, because it is committed to excellence, fairness, responsible gaming and customer satisfaction. Integrity and transparency are also its gold standard.

Onafowokan disclosed that an Integrity Committee would be present at all live draws to observe the process and ensure it is conducted credibly. “We are also regulated by the National Lottery Regulatory Commission (NLRC), which will work closely with NLN to ensure that all processes comply with the rules and regulations. We also have strict procedures to ensure that all draws are conducted fairly and without bias,” Onafowokan said.