Supreme Court Ruling: Federal Government Lacks Authority to Regulate Lotteries in Nigeria
The Supreme Court of Nigeria ruled against the National Lottery Act, asserting that the federal government lacks the authority to regulate lotteries, as they are not included in the Exclusive or Concurrent Legislative Lists. The decision emphasizes that lottery regulation is a residual matter, resting solely within the jurisdiction of state government. The ruling affirms state sovereignty and legislative competence in local governance.
The Supreme Court of Nigeria ruled that the federal government does not possess the authority to regulate lottery activities, declaring the National Lottery Act unconstitutional. This decision arose when the Attorneys General of Lagos State and twenty-one other states challenged the legislative competence of the National Assembly to enact this national lottery law, arguing that lottery activities are not included in the Exclusive or Concurrent Legislative Lists as defined by the Constitution.
Before the National Lottery Act was established in 2005, the Plaintiffs had already implemented laws for regulating lotteries within their jurisdictions. The Nigerian Constitution designates matters not included in these legislative lists as residual, which falls under state authority, thereby positioning the regulation of lottery operations within the purview of the individual states rather than the federal government. Despite the enactment of the National Lottery Act, the Plaintiffs claimed it infringed upon their rights to legislate on lottery activities in their states.
The Plaintiffs’ counsel argued that lottery activities do not constitute trade or commerce as specified in the Constitution. Instead, they maintained that lottery is fundamentally different from traditional economic activities because it is speculative and risk-based, lacking guaranteed financial returns. Thus, they asserted it does not align with the constitutional goals of economic productivity or social justice, and emphasized that this unique nature excludes lottery from being regulated under federal law.
In contrast, the counsel for the Defendants contended that the National Assembly was exercising its rightful powers by enacting the National Lottery Act. They asserted that lottery regulation falls under the authority of commerce, thus justifying federal oversight. The defense emphasized the need for a uniform regulatory structure to prevent conflicting state laws and promote economic stability across Nigeria.
Ultimately, the Supreme Court echoed the Plaintiffs’ argument, ruling that the National Lottery Act was enacted beyond the National Assembly’s constitutional authority. The Court clarified that lotteries do not align with the definitions of trade and commerce, which are essential for federal regulation. It concluded that, since lottery regulation is not expressly mentioned in the relevant legislative lists, it resides entirely under the state legislature’s jurisdiction, reinforcing the principle of state sovereignty in this matter.
The Supreme Court of Nigeria has reaffirmed the principle of legislative competence by declaring the National Lottery Act unconstitutional, thus restoring the authority of individual states to regulate lottery activities. This ruling underscores the limitations of federal power over state jurisdictions in matters not explicitly enumerated in the Constitution, particularly concerning speculative activities like lotteries. The decision reflects an important reaffirmation of state rights in regulating local matters, aligning with constitutional provisions regarding exclusive state powers.
Original Source: businessday.ng
