The Supreme Court of Nigeria ruled that the federal government cannot regulate lotteries, asserting that this power resides with state governments. The decision arose from a lawsuit initiated by the Attorneys General of Lagos State and twenty-one others against the National Lottery Act, which was deemed unconstitutional for exceeding the National Assembly’s jurisdiction. The Court emphasized that lotteries do not qualify as commerce under the Constitution, thus reinforcing state legislative authority over lottery regulation.
The Supreme Court of Nigeria has ruled that the federal government lacks the constitutional authority to regulate lotteries, affirming that lottery activities are under the exclusive legislative competence of state governments. This decision arose from a case brought by the Attorneys General of Lagos State and twenty-one other states against the National Assembly regarding the National Lottery Act of 2005. The Plaintiffs argued that since lottery regulation is not listed in the Constitution’s Exclusive or Concurrent Legislative Lists, it falls within the Residual List, granting exclusive jurisdiction to state authorities.
The Plaintiffs contended that lottery does not fall within “trade and commerce” as defined in the Exclusive Legislative List, asserting that it is a speculative game not grounded in traditional economic activities. They highlighted that the government’s role is limited to tax revenue generation, which is sufficiently addressed by existing tax laws. Furthermore, they maintained that the doctrine of “covering the field” does not apply, emphasizing that any matter not explicitly listed should remain within the states’ legislative domain.
Conversely, the Defendants argued that the National Assembly lawfully enacted the National Lottery Act within its constitutional powers. They claimed that while state governments can issue lottery licenses, the Act provides a necessary uniform framework across all states, preventing conflicting laws and fostering economic stability. They posited that regulating lottery aligns with promoting economic activities and that the federal framework takes precedence under the doctrine of “covering the field.”
The Supreme Court ruled in favor of the Plaintiffs, declaring the National Lottery Act unconstitutional. The Court held that lotteries do not fit the definition of “trade and commerce” or qualify as regulated economic activities under the Constitution. As lottery is absent from both legislative lists, it falls within the Residual List, affirmatively positioning regulation within state jurisdiction.
The Supreme Court’s decision underscores the delineation of legislative powers between state and federal governments in Nigeria, particularly regarding activities such as lotteries. By affirming that the National Lottery Act overstepped constitutional boundaries, the Court reinforces the principle that matters not explicitly assigned to the federal government should remain within the purview of state legislatures. This ruling significantly impacts how lottery regulation will be structured within Nigeria, thus preserving state control over this domain.
Original Source: businessday.ng
