The Supreme Court of Nigeria ruled that the federal government does not have the authority to regulate lotteries and gaming under the National Lottery Act, affirming that such regulation falls within the jurisdiction of state governments. The court determined that lotteries do not constitute ‘trade and commerce’ and are not specified in the Constitutional legislative lists, thus reasserting state rights over lottery regulation.
The Supreme Court of Nigeria determined that the federal government lacks the authority to regulate lotteries and gaming through the National Lottery Act, 2005. The Attorneys General of Lagos State and 21 other states challenged the National Assembly’s legislative competence, claiming that lottery regulation is not enumerated under the Exclusive or Concurrent Legislative Lists in the Nigerian Constitution, making it a residual matter reserved for state governance.
The Plaintiffs contended that the National Assembly’s actions encroach upon state powers, emphasizing that lotteries do not fit within the definition of ‘trade and commerce’ as outlined in the Constitution. According to their argument, lottery is a speculative game of chance, distinct from regulated economic activities that involve guaranteed exchanges of value. They also asserted that lottery activities are privately operated and that government involvement is limited to tax collection.
In contrast, the Defendants, representing the National Assembly, argued that the Act was enacted under its constitutional authority related to commerce. They posited that the Act provides a cohesive regulatory framework across Nigeria, which is essential to prevent inconsistencies among state laws. They emphasized the importance of a unified approach for promoting economic stability and oversight while maintaining that the Act does not undermine state rights or revenues.
The Supreme Court ruled in favor of the Plaintiffs by declaring the National Lottery Act unconstitutional. The Court found that lotteries fall outside the scope of ‘trade and commerce’ and noted the absence of specific legislation pertaining to lotteries in the Constitution’s respective lists. Consequently, the regulation of lotteries pertained solely to state jurisdiction, affirming that the issue of lottery regulation was reserved for the states, not the federal government.
The Supreme Court’s ruling establishes that the federal government lacks the constitutional authority to regulate lottery and gaming in Nigeria. The judgment underlines the distinction between state and federal legislative competences, affirming that lottery regulation is a residual matter within the exclusive province of the states. This decision reinforces the principle of state autonomy in determining the legality and regulation of lottery activities.
Original Source: businessday.ng
