The Supreme Court has nullified the National Lottery Act 2005, declaring it unconstitutional.
In a landmark judgment on Friday, the apex court unanimously ruled that the National Assembly lacked the authority to legislate on lotteries and games of chance.
A seven-member panel of the court held that such powers belong exclusively to state Houses of Assembly.
Justice Mohammed Idris delivered the lead judgment, describing the law as a clear violation of constitutional boundaries.
According to him, only state legislatures have the right to make laws governing lotteries within their territories.
“This judgment reaffirms the constitutional autonomy of states in matters clearly assigned to them,” Idris said.
The National Lottery Act 2005, which had regulated lottery activities nationwide, was effectively struck down.
However, the Supreme Court clarified that the Act would still apply within the Federal Capital Territory (FCT).
The court noted that the National Assembly is empowered to make laws only for the FCT and not for the entire federation on such matters.
This judgment arose from a lawsuit filed by Lagos State and other states in 2008, challenging federal authority over lotteries.
The states argued that the National Lottery Act encroached on their constitutional jurisdiction.
Lagos State, a key party in the case, had long contended that lottery businesses should be regulated by states, not the federal government.
The dispute had lingered for over a decade, creating tension between state and federal authorities.
The Supreme Court’s decision is seen as a major victory for state governments, who now hold the sole authority to legislate on lotteries.
Baba Dala (SAN), a lawyer representing one of the states, described the ruling as “far-reaching and historic.”
“The Court ruled in favor of the state governments, declaring the National Lottery Act unconstitutional and affirming that legislative competence resides within the states. This means the lottery commission and the lottery trust fund are gone.,” he stated.
With this ruling, states will now take full control of lottery regulation and revenue collection within their jurisdictions.
Experts believe this will lead to significant changes in how lottery businesses operate across Nigeria.
Some stakeholders in the lottery industry have expressed concerns about the potential for regulatory inconsistencies between states.
Others see it as an opportunity for states to innovate and generate more revenue.
The federal government, however, is yet to issue an official response to the judgment.
The National Lottery Commission, which has overseen lottery activities nationwide, faces an uncertain future.
Legal experts suggest that the commission may now be limited to regulating lottery activities within the FCT alone.
The judgment also has implications for revenue allocation between federal and state governments.
State governments stand to benefit significantly from direct control over lottery revenues.
For years, states had accused the federal government of usurping their constitutional rights and diverting funds generated from lottery businesses.
The Supreme Court’s decision is expected to resolve these grievances and set a precedent for similar disputes in the future.
Observers have praised the ruling as a bold step toward clarifying the limits of federal and state legislative powers.
It is also seen as a win for Nigeria’s federal structure, reinforcing the autonomy of states.
The National Lottery Act 2005 was initially enacted to regulate lottery activities and ensure transparency in the industry.
It also created the National Lottery Trust Fund, which channels part of lottery revenues to public projects.
