FSGRN Opposes Federal Lottery Regulation Attempts

The Federation of State Gaming Regulators of Nigeria (FSGRN) strongly opposes the Federal Competition and Consumer Protection Commission (FCCPC) Sales Promotion Regulations, 2026. The Federation believes these regulations give a federal agency control over lotteries and games of chance, which they say is not allowed.

The FSGRN sees this as a direct challenge to the powers of the States. They also point to a Supreme Court ruling from 22 November 2024, which supports their position. The administration of President Bola Ahmed Tinubu emphasizes true federalism, and the FSGRN argues that these new regulations go against that.

Nigeria is at a point where it should be strengthening its federal system. It is concerning that a federal body would try to enforce rules that the highest court has already deemed unconstitutional. The problem is not about protecting consumers; it is about whether a federal agency can take control over matters that belong to the States.

The answer to that is a clear no.

Gaming Regulation Belongs to the States

Nigeria runs a federal government system where legislative powers are shared between the national government and the States. Section 4(7) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) gives State Houses of Assembly the power to legislate on issues within their jurisdiction, including matters not given to the national government.

Lotteries, betting, and games of chance fall under this power, except for the Federal Capital Territory. This setup is not a favor from the Federal Government; it is a key part of Nigeria’s Constitution.

Promotions that involve lotteries or prize draws must be regulated by State gaming authorities. Whether a lottery is a traditional game or a sales promotion does not change its nature. It remains a lottery, regardless of how it is marketed.

Supreme Court Ruling Must Be Honored

On 22 November 2024, the Supreme Court of Nigeria made a significant ruling in the case of Attorney-General of Lagos State & Ors v. Attorney-General of the Federation & Ors, Suit No. SC/1/2008. This ruling settled a long-standing argument about who has the power to regulate lotteries in Nigeria.

The Supreme Court affirmed that States have this authority and struck down parts of the National Lottery Act, 2005. Notably, the court issued a perpetual injunction that stops the Federal Government from exercising any regulatory powers over lotteries in the States.

This injunction is very important. It is not just advice; it is a legal order that must be followed. The FCCPC is a federal agency. It cannot gain authority just by claiming consumer protection.

The FSGRN insists that if the FCCPC tries to regulate lotteries within the States, it goes against the Supreme Court's decision and its injunction. What the federal government cannot do directly, it cannot do through another agency or different regulations. Allowing this would go against the Supreme Court’s authority.

FCCPC Regulations 2026 Are Problematic

Looking closely at the FCCPC Sales Promotion Regulations, 2026, shows that they go beyond normal consumer protection. They cover areas usually managed by lottery licensing and gaming supervision.

Regulation 1 says these rules apply to lotteries and promotions in all sectors. Regulation 3 is even worse. It says promotions that are lotteries must follow the National Lottery Act, 2005, and get approval from the National Lottery Regulatory Commission (NLRC).

This is unacceptable because it refers to a federal lottery licensing system that the Supreme Court has already invalidated. It also directs promoters to the federal body that has been stopped from regulating lotteries in the States.

The FSGRN sees this as a serious disregard for the law. The problems do not stop at Regulation 3. The regulations require sales promotions to register with the FCCPC, pay fees, and could even lead to refusal or cancellation of registration.

Consumer Protection Should Not Justify Overreach

The FSGRN respects the FCCPC's job to protect consumers from bad practices. State gaming regulators share this goal. They oversee promotional lotteries and gaming fairness across Nigeria.

The FSGRN does not argue against the FCCPC's role in consumer protection. What they dispute is the idea that consumer protection gives the FCCPC the power to regulate lotteries that belong to the States.

There is a big difference between protecting a consumer in a lottery and regulating the lottery itself. The first is about consumer rights; the second is about who controls the lottery. Regulation must fit with State laws.

President Tinubu’s Vision for Federalism

The FSGRN believes this situation goes against President Bola Ahmed Tinubu’s commitment to true federalism. He has shown support for State autonomy and the rule of law, especially against the proposed Central Gaming Bill that aimed to bring lotteries back under federal control.

Any federal law or regulation that goes against the Constitution or Supreme Court decisions challenges the principles of federalism and the rule of law that President Tinubu stands for. The FCCPC Sales Promotion Regulations, 2026, must be checked against these standards.

FSGRN Calls for Regulation Review

Given all these issues, the FSGRN demands that the FCCPC review and change the Sales Promotion Regulations, 2026. They want to remove anything that steps on State powers over lotteries and related activities, including references to the invalidated National Lottery Act, 2005.

The FSGRN insists that these regulations must follow the Supreme Court's ruling, especially its injunction against federal interference in State lottery rules. They want to keep the FCCPC’s consumer protection role while respecting State authority.

Supreme Court Authority Must Be Respected

The FSGRN reminds everyone that State powers are not up for negotiation. The Supreme Court's ruling from November 2024 confirmed State control over lotteries and must be respected by federal bodies.

They call on the FCCPC to ensure its regulations match the Supreme Court ruling and urge the Attorney-General to enforce compliance across federal agencies. The FSGRN is committed to working with others while protecting the rights of the States and will take necessary legal steps to defend them.

The Supreme Court has made its decision. The Constitution is the highest law. No federal agency can revive powers that the Supreme Court has blocked. Nigeria's federalism needs to be honored in both action and spirit.