Nigeria’s state regulator insists market remains ‘open’ amid licensing upset

Jillian Dingwall February 5, 2025

SiGMA news

Nigeria’s state regulator insists market remains ‘open’ amid licensing upset

Lagos State’s gambling regulator has reaffirmed that the Nigerian gambling market remains open, addressing concerns from online operators and stakeholders following the recent voiding of national licenses.

During a webinar titled “The Future of Gaming in Nigeria in Light of the Supreme Court Judgment” held on 31 January, Faruq Hassan, the manager of strategy and global engagement at the Lagos State Lotteries and Gaming Authority (LSLGA), emphasised that existing regulations are still in effect.

Nigeria’s Supreme Court ruling

The Supreme Court’s ruling in late 2024 marked a significant shift in Nigeria’s gambling landscape, granting states the authority to issue their own gambling licenses. This decision came after a prolonged struggle over regulatory oversight between state and federal authorities.

Olafadeke Akeju, managing partner at WYS Solicitors, explained that licenses issued by the National Lottery Regulatory Commission (NLRC) have effectively become “defunct” due to this ruling, which nullified the National Lotteries Act. As Akeju noted, “This is the highest court of the land; therefore, there is no appeal.”

Reassurance for NLRC license holders

In response to concerns from operators holding NLRC licenses, Hassan reassured stakeholders that there would be no victimisation and that discussions were ongoing about integrating these operators into the new regulatory framework. He stated, “Everything is in order,” highlighting efforts to ensure a smooth transition for affected stakeholders.

An initiative being discussed to address the regulatory challenges is the introduction of a Universal Reciprocity License (URL) by the Federation of State Gaming Regulators of Nigeria (FSGRN). This proposed license aims to allow state licensees to offer their digital services nationwide.

Hassan described the URL as a potential solution to the current regulatory chaos, stating that it has been under consideration even before the Supreme Court’s ruling. He remarked, “The URL is the proposed way forward to cure this chaos,” but emphasised that until the plans are finalised, “operators and all stakeholders must comply with this at the moment.”

LSLGA’s role in supporting operators

The LSLGA has established a comprehensive legal framework governing both online and land-based gambling. Hassan indicated that the authority would provide guidance and support for operators facing challenges in neighbouring states. He stressed the importance of fostering a thriving business environment in Nigeria, saying, “If you don’t bring business, there is no way we can exist.”

Industry praise for Lagos’ proactive approach

Olabimpe Akingba, regional manager for Africa at Mchezo Limited, which owns betPawa, praised the LSLGA for its proactive approach to uniting state regulators. She acknowledged that while the URL proposal is promising, it presents new challenges for strictly online operators. However, for those involved in both online and retail sectors, Akingba noted that the ruling brings much-needed clarity.

Akingba advocated for collaboration between operators and regulators to develop a robust framework that not only generates revenue but also protects citizens and supports economic growth in Nigeria. She stated, “We need proper regulations that protect citizens and allow operators to thrive,” emphasising the importance of mutual cooperation.

Ongoing discussions on URL implementation

While discussions regarding specific details of the URL, including associated fees, are ongoing among FSGRN members, critical issues such as revenue sharing among states and licensing fees are expected to take some time to resolve. The complex nature of these negotiations reflects the broader challenges facing Nigeria’s gambling industry as it adapts to new regulatory realities.

Collaboration is key to Nigeria’s gambling future

As Lagos State works its way through these changes following the Supreme Court ruling, stakeholders are encouraged to engage with regulators actively. The evolving landscape presents both challenges and opportunities for operators willing to adapt to new frameworks while ensuring compliance with state regulations. It would seem that the future of gaming in Nigeria hinges on effective collaboration among all parties involved in this constantly evolving sector.

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