The Supreme Court of Nigeria ruled that the National Assembly lacks authority to regulate lotteries, declaring the National Lottery Act unconstitutional. The Court established that lottery does not fall under “trade and commerce” as defined in the Constitution and belongs to the residual powers of state governments. The decision highlighted the supremacy of state legislation in matters not explicitly enumerated for federal governance.
The Supreme Court of Nigeria addressed the challenge posed by the Attorneys General of Lagos State and twenty-one other states against the National Assembly’s authority to regulate lotteries through the National Lottery Act. The Plaintiffs argued that lottery regulation is not within the National Assembly’s constitutional powers, as it is not enumerated on either the Exclusive or Concurrent Legislative Lists, thereby being a residual matter suited for state regulation. Prior to the 2005 enactment of the National Lottery Act, the states had established their own lottery laws, reinforcing their argument for exclusive state control.
Plaintiffs’ counsel contended that lottery should not be classified under “trade and commerce,” as it lacks the definitive characteristics of traditional commercial activities. They elaborated that while trade and commerce involve predictable exchanges, lotteries are speculative and risk-based. Counsel asserted that the government’s role in the lottery should be limited to taxation, supported by existing tax legislation, not regulatory authority.
In contrast, the Defendants argued that the National Assembly had the constitutional authority to enact the National Lottery Act, drawing on its powers to legislate on matters of commerce. According to them, the Act provides a necessary uniform regulatory framework across Nigeria, allowing state governments to issue limited lottery licenses without infringing on their rights or revenues. They stressed that a cohesive regulatory structure promotes economic stability and consistency, while the principle of “covering the field” allows federal laws to supersede conflicting state legislation.
Ultimately, the Supreme Court ruled that the National Lottery Act was beyond the constitutional authority of the National Assembly, rendering it unconstitutional. The Court clarified that lotteries do not classify as “trade and commerce” under constitutional provisions and are not referenced in either legislative list, placing them within the residual jurisdiction of state governments. Thus, the decision was made in favor of the Plaintiffs, affirming state control over lottery regulation.
The Supreme Court’s decision underscores the limitations of the National Assembly’s legislative powers concerning lottery regulation in Nigeria. By ruling the National Lottery Act unconstitutional, it emphasizes the principle that matters not expressly assigned to the federal government fall under the jurisdiction of state governments. This ruling not only affirms the Plaintiffs’ arguments but also delineates the boundaries of federal versus state legislative competences in Nigeria’s regulatory landscape.
Original Source: businessday.ng
