After 15 Years, Supreme Court to Hear Suit on Lottery Regulation Feud

The Supreme Court has fixed March 13, 2024, to hear a suit filed in 2008 by the attorney general of Lagos against the federal government regarding who controls and regulates the gaming and lottery sector. A seven-person panel of justices of the court led by Justice Kudirat Kekere-Ekun fixed the date at a resumed sitting on Monday.

The attorney general of the federation is the first defendant, while the National Assembly is the second defendant. The attorneys general of 34 states were joined as defendants by the Supreme Court on November 15, 2022. Meanwhile, the apex court panel unanimously deemed all the processes filed out of time by the defendants as duly and properly filed, having been regularised. 

Ekiti was joined as co-plaintiff in the suit following an order of the court made on October 6, 2020. The application by the attorney general of Oyo state to join as co-plaintiff, having been withdrawn, was struck out by the panel.

Bode Olanipekun announced an appearance for the Lagos government, while Adetunji Osho appeared for Ekiti. The federal government was represented by Innocent Daa’gba, while Ifeanyi Mrialike represented the National Assembly.

The News Agency of Nigeria (NAN) reports that attorneys general of the 33 states were duly represented and announced appearances.

However, Kwara had no legal representation despite being served with a hearing notice. The Supreme Court ordered the Jigawa and Kaduna governments to put their houses in order by resolving the issue of legal representation before the next hearing date.

Kekere-Ekun advised that all the state governments that are on one side in accordance with their respective interests should present a common argument to save the court’s time on the hearing date.

Speaking to judiciary correspondents at the Supreme Court, Innocent Daagba said he had filed processes and submissions of the Federal Government since 2020, adding that the processes have been regularised by the court, which clears the coast for hearing of the matter.

Recall that on Aug.15, 2022, the Federal Government (the Nigerian Lottery Regulation Commission and the Nigerian Lottery Trust Fund) won the case against Lagos and other states on the issue of multiple regulations in the gaming sector.

The Bookmakers Association of Nigeria had initiated the lawsuit to determine the legitimate regulators of gaming businesses because they complained about multiple taxes and licensing fees paid to states and the federal government.

In suit No FHC/L/CS/15992020, filed before Justice I.N Oweibo of the Lagos High Court, the judge ruled that the federal government should be the sole regulator of the gaming business, citing the Constitution as putting lottery in the exclusive list. The judge said only the National Assembly can legislate on lottery matters.

Despite the judgment, there is still no end to the back-and-forth bickering between the bookmakers and state governments on multiple taxation and regulation. On July 19, 2023, Justice Iniekenimi Oweibo of the Lagos Division of the Federal High Court ruled that the federal government, through the National Assembly, had the exclusive right to legislate and control lottery activities in the country.

Few months after the judgment, a Lagos high court delivered another judgment holding that matters of lottery and one-chance betting were subjects under the residual list in the Constitution. By this, the judge held that Lagos had the right to regulate the sector.

However, by a further amended originating summons marked SC/1/2008, the plaintiffs want the apex court to declare that lottery is not one of the 68 items in respect of which the National Assembly has the exclusive vires to make laws under Part 1 of the Second Schedule of the Constitution (as amended).

They are seeking a declaration that, regarding the clear provisions of sections 4 (2) and (3) of the Constitution, the federal parliament lacks the vires to legally and constitutionally make any law to regulate and control the lottery operation in Nigeria.

“A declaration that having regard to the clear provision of Section 4(4)(a), (b) and Part ll of the Second Schedule, matters relating to lottery do not fall within items which the National Assembly and state assemblies are concurrently empowered to make laws with regard thereto.

“A declaration that having regard to the clear provisions of section 4(7)(a) and (c) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), the Lagos State Government, vide the Lagos State House of Assembly has the power to the exclusion of the National Assembly, to make Laws to regulate and control the operation of lottery within Lagos State,” said the court document.

More so, the plaintiffs are praying for a declaration that having regard to the clear provisions of sections 4(4)(b), (7)(a) and 299(a) of the Constitution as amended, the power of the National Assembly to make laws to regulate and control the operation of lottery is limited by the 1999 Constitution to only the Federal Capital Territory.

The plaintiffs are also seeking a declaration that sections 17, 18, 19, 20 and 21 of the National Lottery Act CAP N145, Laws of the Federation of Nigeria, made by the National Assembly, are inconsistent with the provisions of the 1999 Constitution.

Furthermore, they want a declaration that the National Lottery Act CAP N145, Laws of the Federation of Nigeria, is inconsistent with the provisions of the 1999 Constitution.

In addition, the plaintiffs want an order nullifying sections 17, 18, 19, 20 and 21 of the National Lottery Act CAP N145, Laws of the Federation of Nigeria, as well as an order nullifying the entirety of the National Lottery Act CAP N145, Laws of the Federation of Nigeria.

Also, they are praying for an order of perpetual injunction restraining the first defendant either by himself, agents privies, or agencies of the Federal Government through anybody acting on their behalf from implementing sections 17, 18, 19, 20 and 21 of the National Lottery Act CAP N145, Laws of the Federation of Nigeria, within the territory, of Lagos.

Their prayers include an order of perpetual injunction restraining the first defendant either by himself, agents, privies, agencies of the federal government, or through anybody acting on their behalf from taking any step or action aimed at enforcing or continuing to enforce any/or all of the provisions of the National Lottery Act CAP N145, Laws of the Federation of Nigeria, within the territory of Lagos.

Another request of the plaintiffs before the court is an order for the first defendant to give an account of all revenues earned by the Federal Government “with respect to implementation of the National Lottery Act CAP N145, Laws of the Federation of Nigeria, within Lagos State and pay same over to the plaintiff.”