The Supreme Court on Friday invalidated the National Lottery Act 2005, declaring that the National Assembly lacks the authority to legislate on matters concerning lottery and games of chance in states across the federation. The apex court held that such powers are exclusively vested in the state Houses of Assembly.
Delivering the lead judgment, Justice Mohammed Idris, speaking on behalf of a seven-member panel, ruled unanimously that the National Lottery Act 2005 could only be enforced in the Federal Capital Territory (FCT), where the National Assembly holds legislative powers. The judgment marked the culmination of a protracted legal battle initiated in 2008 by the Lagos State government, later joined by Ekiti State and 33 other states, challenging the federal government’s control over lotteries and gaming operations within their jurisdictions.
The Act, signed into law by former President Olusegun Obasanjo in 2005, established the National Lottery Regulatory Commission to oversee lottery operations nationwide and manage the National Lottery Trust Fund. However, Lagos State contested its applicability, arguing that lotteries and games of chance fall under the residual legislative powers of states as provided by the Constitution.
In 2020, Ekiti State joined Lagos as a co-plaintiff, and by 2022, 33 other state governments were added as co-defendants in the case. The apex court’s ruling affirmed the states’ argument, reiterating that the National Assembly’s legislative authority does not extend to lottery regulation within state boundaries.
Justice Idris emphasized that the National Assembly is constitutionally restricted to making laws for the FCT, and as such, the National Lottery Act 2005 cannot be enforced in any state of the federation. This judgment clarifies the jurisdictional boundaries of state and federal legislative powers concerning gaming and lottery businesses.
The decision is a significant victory for states asserting their autonomy over economic activities within their territories and reinforces the constitutional principle of federalism in Nigeria.
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