Supreme Court Affirms State Authority Over Lottery Regulation in Nigeria

The Supreme Court of Nigeria ruled that the National Assembly lacks the constitutional power to regulate lottery activities through the National Lottery Act due to its absence from the Exclusive and Concurrent Legislative Lists. The Court emphasized that such matters fall under state jurisdiction, thus affirming state authority over lottery regulations.

The federal government’s jurisdiction over lottery and gaming regulation in Nigeria has been challenged in a recent Supreme Court case. The case, involving the Attorneys General of Lagos State and twenty-one other states, asserted that the National Assembly lacks constitutional authority to legislate on lotteries, as these activities are absent from both the Exclusive and Concurrent Legislative Lists outlined in the Constitution. The Plaintiffs argued that lottery regulation falls under state authority, given that the Constitution reserves unlisted matters for state legislation.

The Plaintiffs had enacted state-specific laws governing lotteries prior to the National Lottery Act of 2005, which was seen as infringing upon their rights to regulate lottery activities. Their argument rested on the premise that lottery does not fit the definition of “trade and commerce” as outlined in the Exclusive Legislative List. They emphasized that lottery operates differently than traditional commercial activities due to its speculative nature and lack of guaranteed returns.

Conversely, Counsel for the Defendants maintained that the National Assembly enacted the National Lottery Act lawfully, arguing that its authority derives from its power to legislate on commerce-related matters. They contended that the Act’s federal regulatory framework provides uniformity essential for all states, preventing inconsistencies in state laws regarding lottery operations.

The Supreme Court ultimately concluded that the National Lottery Act was unconstitutional as it exceeded the legislative competencies outlined in the Constitution. The ruling stated that lottery, being a game of chance, does not fall under commerce and is not recognized in the Exclusive or Concurrent Legislative Lists. Thus, the Court affirmed that matters unassigned to the Federal Government are reserved for state legislation, ruling in favor of the Plaintiffs.

The Supreme Court of Nigeria ruled that the National Assembly does not possess the constitutional authority to regulate lotteries by enacting the National Lottery Act, as the activities do not fall under the defined parameters of trade or commerce. The decision emphasizes the importance of state authority in matters not specified within the federal legislative competence, highlighting that lottery regulation remains the prerogative of the individual states.

Original Source: businessday.ng